Motor Vehicle Deduction Calculator
Use your car for work? Our Motor Vehicle Deduction Calculator compares the cents-per-kilometre method against the logbook method, so you can see straight away which one gives you the bigger deduction this financial year.
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- Sole Traders
- Contractors & ABN Holders
- Property Investors
- Small Business Owners
- Individuals With Multiple Income Sources
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How This Motor Vehicle Deduction Calculator Works
If you use your personal vehicle for work, you may be able to claim a tax deduction for eligible work-related travel. The ATO generally allows two methods for calculating car expense deductions: the cents-per-kilometre method and the logbook method. Enter your annual work-related kilometres to calculate your deduction under the cents per kilometre method. You can also enter your business-use percentage and eligible running costs, including fuel, servicing, insurance, registration, interest and depreciation, to estimate your deduction using the logbook method.
The calculator compares both methods side by side, making it easier to understand which one could provide the larger deduction based on the information you enter. This calculator provides a general estimate only. Your actual claim will depend on your eligibility, records and current ATO requirements.
Claim the Right Motor Vehicle Deduction
From maintaining a compliant logbook to calculating eligible running costs, we’ll help you maximise your work-related car expense claim.
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FAQs
Got Questions? We've Got Answers
Find answers to common questions about claiming work-related car expenses in Australia.
What is the cents-per-kilometre method?
It lets you claim a set rate for each business kilometre travelled, up to a maximum of 5,000km per car each year, without needing detailed expense records.
What is the logbook method?
It calculates your deduction using your business-use percentage, worked out from a valid 12-week logbook, applied to your car’s actual running costs for the year.
Which method gives the bigger deduction?
It depends on your circumstances. High-cost cars with strong business use often do better under the logbook method, while lower business use, or fewer records, may suit the cents-per-kilometre method.
Do I need a logbook to use the cents-per-kilometre method?
No. This method doesn’t require a logbook, though you still need a reasonable basis for the number of business kilometres claimed.
How long does my logbook need to cover?
A valid logbook needs to record your trips over a continuous 12-week period, and can generally be used for up to five years, provided your circumstances stay similar.
Can I switch between methods each year?
Yes, you can choose whichever method suits you best each year, provided you meet the record-keeping requirements for that method.
What running costs can I include under the logbook method?
Running costs generally include fuel, registration, insurance, servicing, interest or lease payments, and depreciation, combined and then apportioned by your business-use percentage.
Can I claim more than 5,000km under the cents-per-kilometre method?
No. Even if you’ve travelled more, this method caps your claim at 5,000km per car, per year.
Ready to Maximise Your Work-Related Car Claim?
Whether you drive occasionally for work or rely on your vehicle every day, our registered tax professionals can help you claim the right deduction, maintain the correct records and prepare your tax return with confidence.