EV charging tax deductions Australia are a genuinely new area of tax law. If you use an electric vehicle for work, the cost of charging that vehicle is a legitimate business expense — but calculating it correctly, especially for home charging, requires some care.
This guide explains what you can claim, how to work out the deductible amount, and what records the ATO expects you to keep.
EV charging costs are treated like fuel costs. Under the cents-per-kilometre method, they are already included in the 88c/km rate. Under the logbook method, you claim them as actual expenses proportional to business use.
Can you claim EV charging as a business expense?
Yes. The ATO treats electricity used to charge an electric vehicle for work the same way it treats petrol or diesel. It is an operating cost of the vehicle and is deductible when the vehicle is used to produce assessable income.
The method you use to claim car expenses determines how charging costs are handled:
- Cents per kilometre (88c/km): The rate already accounts for all running costs including electricity. You do not add charging on top.
- Logbook method: You claim the actual cost of electricity used for charging, multiplied by your business-use percentage.
If you drive fewer than 5,000 km for work each year, cents per kilometre is usually simpler. Above 5,000 km or with high running costs, the logbook method often gives a larger deduction.
See the full comparison at ATO Car Expense Guide.
Home charging: how to calculate the deduction
Most EV drivers charge overnight at home. The ATO does not object to this, but you need to calculate the electricity cost that relates to the vehicle rather than general household use.
Step 1: Find your vehicle’s energy consumption rate
Your vehicle’s manual or the manufacturer’s website will show consumption in kWh per 100 km (for example, 18 kWh/100 km).
Step 2: Work out your work-related kilometres
Use your trip records to identify how many kilometres you drove for work during the year.
Step 3: Calculate the electricity used
Multiply work kilometres by the consumption rate. For example:
- 4,000 km × 18 kWh / 100 = 720 kWh
Step 4: Apply your electricity rate
Check your electricity bill for your per-kWh rate (tariff). For example:
- 720 kWh × $0.32/kWh = $230.40 deductible charging cost
This amount then gets multiplied by your business-use percentage if you are on the logbook method.
Public charging stations and receipts
When you charge at a public charging station during a work trip, the cost is fully deductible (subject to your business-use percentage under the logbook method).
Keep records of public charging just as you would fuel receipts:
- date and location
- amount paid
- vehicle registration (if you have multiple vehicles)
Many charging networks send a receipt by email. Save these or store them in your bookkeeping system. For smaller incidental charges you cannot get receipts for, a contemporaneous note with date, amount, and work purpose is acceptable.
EV charging for employees vs sole traders
Employees claiming a deduction for work-related car expenses use either method on their personal tax return. Charging at home is deductible only if the employer does not reimburse the cost. If your employer pays your charging costs, that reimbursement may form part of an FBT arrangement — check with your employer.
Sole traders include EV charging as part of their car expense claim in their business income tax return. The same calculation method applies. Read more about the logbook and cents-per-km methods for sole traders at Sole Trader Car Expenses ATO.
Employer-provided EVs: If your employer supplies you with an EV and pays for charging, the FBT exemption for eligible EVs (introduced from 1 July 2022) may apply. This means no FBT is payable on private use of the vehicle or associated charging costs. See EV FBT Exemption Australia for details.
GST on EV charging
Sole traders and businesses registered for GST can claim a GST credit on business-related EV charging costs, provided you have a valid tax invoice.
- Public charging stations typically include GST in their price and can provide a tax invoice.
- Home electricity is billed with GST, but you can only claim the credit on the portion used for business charging.
To calculate the GST credit on home charging, use the same business-use percentage you apply to the overall electricity cost.
You cannot claim a GST credit if you are not registered for GST (for example, most employees and sole traders under the $75,000 GST registration threshold who have not voluntarily registered).
Keeping records for charging costs
The ATO requires you to keep records that support your claim. For EV charging, that means:
- Electricity bills showing your per-kWh rate (home charging)
- Kilometre records for work-related travel — a logbook or trip-by-trip diary
- Vehicle consumption data from the manufacturer or owner’s manual
- Public charging receipts or payment records
- Odometer readings at the start and end of the income year
Your kilometre records must show the date, destination, and business purpose of each trip. The ATO can ask for these records if you are audited.
Using Tripbook makes this straightforward. The app automatically logs each trip, records start and end odometer readings, and lets you categorise trips as business or personal in real time. At tax time, you export a complete report that meets ATO requirements.
Good records protect your claim. If you cannot substantiate the kilometres you drove for work, the ATO can reduce or disallow your deduction — including the related charging costs.
If you are a high-kilometre EV driver, consider pairing your charging records with a logbook. The logbook method captures the full actual cost of electricity, which can produce a meaningfully larger deduction than the cents-per-kilometre rate alone.
For a broader overview of EV deductions available to Australian taxpayers, visit Electric Vehicle ATO Deductions.
EV charging tax deductions in Australia are straightforward once you understand which method applies to you. Track your kilometres accurately, keep your electricity bills, and note any public charging receipts — those three habits are all you need.
Download Tripbook to start logging your EV trips today.
