How do I claim car expenses for work-related travel in Australia?

You can claim car expenses for work-related travel in Australia, but not for ordinary commuting between your home and regular workplace. Work-related car travel includes trips between different workplaces, travelling to meet clients, and carrying bulky tools that cannot be stored at work.

There are two methods to calculate your car expense deduction:

1. Cents per kilometre method:

• Rate for 2024-25: 85 cents per kilometre
• Maximum claim: 5,000 business kilometres per car per year
• Maximum deduction: 5,000 x A$0.85 = A$4,250
• You do not need written evidence of your kilometres, but you must be able to show how you calculated your claim with a reasonable estimate

2. Logbook method:

• Keep a logbook for a continuous 12-week period recording every trip (odometer readings, purpose, kilometres)
• The logbook is valid for 5 years unless your circumstances change significantly
• Calculate the business-use percentage from the logbook
• Claim that percentage of all car running expenses including fuel, registration, insurance, servicing, depreciation, and loan interest
• You must keep receipts for all expenses

What you cannot claim:

• Travel between home and your regular place of work (ordinary commuting)
• Private trips, including holidays and personal errands
• Expenses already reimbursed by your employer

Common eligible trips:

• Travelling between two separate workplaces (for example, from your office to a client site)
• Travelling from home to work when you carry bulky tools or equipment that your employer requires and there is no secure storage at work
• If you have no fixed workplace and travel directly to varying work locations