FREE TAX RETURNS.COM.AU
Work vehicle expenses

Make your car claimable

If you use your own vehicle for work, it’s often your single biggest deduction. First make sure your car qualifies — then pick the method that gets you the most back.

First, qualify

Make your car claimable

The plain trip from home to your regular workplace is normally private and not claimable. But your car qualifies — and those trips, plus tolls and parking, become deductible — if you meet one of these two rules.

Rule 1 · Bulky items

You carry heavy tools & equipment

For the hard-yakka trades — truckies, tradies, miners, equipment operators. Your car qualifies if you must carry bulky gear and can’t leave it at work because storage is unavailable, too small, or too insecure.

Rule 2 · Multiple sites

You drive as part of the job

For carers, sales reps, IT, office assistants/PAs, teachers and anyone travelling between work locations. Any regular work driving that’s a genuine responsibility of your role counts — and if it isn’t yet, volunteer to take it on.

Examples of qualifying use: carers driving clients to shopping, appointments or visits; sales/IT staff using their own car to see clients instead of a company car; PAs running banking, post, supplies or courier trips; teachers driving to coaching or off-site training; managers travelling between warehouses or sites. Once your car qualifies, classify your home-to-work-and-back kilometres as work-related — a commonly missed claim.
Two ways to claim

Cents per kilometre, or the logbook

One method per car each year. Cents-per-km is simplest, but it’s capped — for anyone doing serious work kilometres the logbook wins by a mile.

Cents per kilometre

simple

A flat rate for every work kilometre — no receipts for running costs, just a reasonable record of how you worked out your trips.

Rate (2026)$0.88 / km
Annual cap5,000 km
Most you can claim$4,400

Logbook method

bigger claims

Claim your work-use percentage of your actual running costs and depreciation. Routinely worth $25,000–$30,000+ for heavy users.

Fuel, rego, insurance, servicing, tyres & repairs
Loan interest and decline in value of the car
All multiplied by your work-use %
Still on cents-per-km? For trucks’ sake, start a logbook. It’s just one continuous 12-week record, valid for five years — about 24 entries for a long-haul truckie, 60–72 for everyone else — and it can lift a $4,400 claim into the tens of thousands.
Logbook essentials

Getting your work-use percentage right

1

Log 12 continuous weeks

Record every trip — date, odometer start/finish and whether it was work or private — for one representative 12-week stretch.

2

Work out your %

Work kilometres ÷ total kilometres = your business-use percentage. A valid logbook lasts five years unless your driving pattern changes.

3

Apply it to your costs

Add up running costs plus depreciation, then multiply by your percentage. Depreciation is capped at the car limit ($69,674 → about $8,709/yr).

A worked example

What the logbook method adds up to

Every running cost, top-up, wash and improvement counts — plus the car’s decline in value. Here’s a real example, multiplied by a 100% work-use logbook.

Detailed car expenses

example figures
Running costs — fuel, rego, insurance, repairs…$18,040.00
Top-ups & maintenance — oils, fluids, filters…$200.00
Wash & detailing — covers, products, gear…$1,394.25
Improvements — depreciated over 8 yrs$100.00
Preview only — show every line item
Item$ each×Total
Running costs
Fuel$150.0052$7,800.00
Registration$300.004$1,200.00
Insurance$120.0012$1,440.00
Loan interest (from statements / calculator)$4,500.00
Tyres$800.00
Batteries$150.00
Wiper blades$0.00
Lights, fittings, bulbs, fuses & leads$0.00
Repairs — parts only (you did the work)$800.00
Repairs — parts & labour$500.00
Service cost$250.00
Service cost #2$600.00
Towing$0.00
Excess on insurance$0.00
Top-ups & maintenance (DIY / between services)
Oil$60.002$120.00
Coolant$45.001$45.00
Window wiper fluid$10.001$10.00
Oil filters$25.001$25.00
Brake fluid · transmission fluid · power steering fluid$0.00
Fuel additives · fuel filters · air filters · other$0.00
Wash & detailing
Seat covers$185.001$185.00
Pop-up sun shades$25.001$25.00
Floor mats$55.001$55.00
Roadside assist$218.001$218.00
Automatic car wash$20.0012$240.00
Shampoo$50.001$50.00
Interior cleaners$15.004$60.00
Tyre shine$7.502$15.00
Window cleaner$5.004$20.00
Rags, cloths & sponges$20.002$40.00
Pressure cleaner$299.001$299.00
Vacuum cleaner$50.0050%$25.00
Hose$25.0025%$6.25
Deodoriser (Glen 20, plug-ins, trees)$6.0026$156.00
Dash / steering / full covers · tinting · wax & polish · dust buster · hose fittings · sprinkler · other$0.00
Improvements (depreciated over 8 years)
New tray ($800 ÷ 8 yrs)$800.00÷8$100.00
Spots · bull bar · tow ball · paint job · rustproofing · wheels · electric brakes · other$0.00
Lease & depreciation
Lease payments (only if leased direct — not salary sacrifice)$0.00
Decline in value of car ($65,000 ÷ 8 yrs · capped at $8,709/yr)$8,125.00
The fine print

The 3 golden rules

  • You spent the money yourself and weren’t reimbursed by your employer.
  • The expense is directly related to earning your income.
  • You have a record to prove it — logbook, receipts or bank statements.
What you can’t claim
  • ×The car’s purchase price outright — claim it as depreciation over ~8 years instead.
  • ×The principal on a car loan — though the interest and bank/admin fees are claimable.
  • ×Fines and parking tickets.
  • ×Ordinary home-to-work commuting — unless your car qualifies under one of the two rules above.
Lost or wrote off your car? If it’s scrapped, sold or written off for less than its depreciated (written-down) value, you can claim the remaining loss as a car expense — a commonly missed claim. It gets technical, so grab a hand if you’re unsure.
Watch & learn

How to claim up to $25,000 for your car

A step-by-step look at the logbook method and how the biggest legitimate car claims are built — running costs, depreciation and work-use percentage.

See the full video library
How to claim up to $25,000 for your car video thumbnail
How to claim up to $25,000 for your car

Add up your car claim now

The car worksheet itemises every cost, runs both methods and shows you which is bigger.

Start my return