Estimate a potential deduction for eligible work-related car use and compare the cents-per-kilometre and logbook approaches where they are available to you.
Individuals and eligible sole traders or partnerships may be able to claim car expenses for income-producing travel using the cents-per-kilometre method or the logbook method. The method you choose affects both the calculation and the records you need to keep.
For 2026–27, the cents-per-kilometre rate is 91 cents per eligible kilometre, capped at 5,000 kilometres per car. That rate already takes the car’s running costs into account, so you do not add fuel, registration, insurance or depreciation separately under that method. The logbook method instead applies a supported business-use percentage to eligible actual car expenses.
Compare the two main methods and avoid double-counting car expenses.
The rate is 91 cents per eligible kilometre for the 2026–27 income year. The cents-per-kilometre method is capped at 5,000 eligible kilometres per car for the year.
No. The set cents-per-kilometre rate is intended to cover all car expenses, including running costs and decline in value. Claiming those expenses again separately would duplicate the deduction.
You keep a valid logbook and use it to establish the work or business-use percentage of the car. That percentage is then applied to eligible actual car expenses, subject to the tax rules and record-keeping requirements.
Ordinary travel between home and a regular workplace is generally private and not deductible. Exceptions can apply in particular circumstances, so the purpose and pattern of the travel matter.
If you are eligible for both methods, the better option depends on your kilometres, actual costs and records. A logbook may produce a different result where business use or vehicle costs are high, while cents per kilometre can be simpler for lower eligible travel.
We can review your travel pattern, records and vehicle costs to help you prepare a supportable motor vehicle deduction.
