Driving for work? You can claim car expenses two ways — and one almost always gives you more. See which one wins for your situation in 30 seconds.
Compares the ATO’s Cents-per-km method (simple, capped at 5,000km) against the Logbook method (more paperwork, often much bigger deduction). Australian rates, FY26.
Vehicle: Logbook vs Cents-per-km
Which deduction method gives you more — the simple one, or the paperwork-heavy one?
Your driving
Annual running costs (for logbook method)
Three steps, thirty seconds
Enter your km
Total km and business km for the year — from your logbook, app, or honest estimate.
Add running costs
Fuel, servicing, rego, insurance, tyres, loan interest (if financed), and vehicle purchase price.
Pick the winner
Side-by-side comparison of both methods, with the bigger deduction highlighted plus the extra tax saved at your marginal rate.
Cents-per-km vs Logbook
| Method | Best for | Records needed |
|---|---|---|
| Cents per km | Light business use (under 5,000 km), simple paperwork preferred. Capped at 5,000 km × current rate (88c FY25). | Diary or reasonable estimate of business km. No receipts needed. |
| Logbook | Heavy business use (5,000+ km), high running costs, recent vehicle purchase. No deduction cap. | 12-week continuous logbook valid 5 years, plus receipts for all running costs and depreciation records. |
Questions we hear a lot
What’s the current cents-per-km rate?
88c per km for FY25, applied to a maximum of 5,000 business km per year. The rate is updated periodically by the ATO — verify the current rate before lodging. Maximum deduction at the current rate is $4,400 (5,000 × 88c).
Do I have to keep a logbook every year?
No — a logbook is valid for 5 years if your business use stays roughly the same. After 5 years, or if your business use changes materially, you need a new 12-week logbook.
What counts as “business km”?
Travel between work sites, client visits, meetings, work-related shopping/errands, conferences. NOT included: home to your regular workplace (that’s commute), even if you carry tools or work after-hours.
What’s the car cost limit?
You can only depreciate a car up to $69,674 (FY25, indexed annually). If you buy a $100k Tesla, only $69,674 is the depreciation base. The car limit doesn’t apply to utes/vans designed primarily to carry goods (1-tonne+ load capacity).
Where does my data go?
Nowhere. The tool runs entirely in your browser.
Can I switch methods between years?
Yes. Pick the better method each year. But you can’t mix methods within a year for the same vehicle.
What about a work ute or van over 1 tonne?
Vehicles with a load capacity over 1 tonne (most utes and large vans) are exempt from the car limit. If used 100% for business, you can claim 100% of running costs and depreciation. They can also use either method — usually logbook wins by a wide margin.
