If you drive your own car for work in Australia, kilometre tracking is one of the simplest ways to protect your tax claim and stay compliant. The ATO allows two main methods to claim work-related car expenses: cents per kilometre and the logbook method. Both require a solid record of your work-related travel.
This guide covers what the ATO expects, what to record, and how to keep a clean log that is easy to defend if asked.
The two ATO methods in plain English
You can choose either:
- Cents per kilometre: a fixed rate per work-related kilometre, capped at 5,000 km per car.
- Logbook method: claim the business-use percentage of your actual car expenses, based on a 12-week logbook.
For the current rate and examples, see ATO car expense guide.
What a compliant logbook must include
For the logbook method, the ATO expects a logbook that is continuous for at least 12 weeks and representative of your travel. Your logbook should record:
- the destination and purpose of every journey
- odometer readings at the start and end of each journey
- kilometres travelled for each journey
- start and end odometer readings for the logbook period
Your logbook is valid for up to 5 years, but you must keep odometer readings for the start and end of each year you claim and update the logbook if your travel pattern changes.
What to record if you use cents per kilometre
If you use cents per kilometre, you do not need receipts, but you must be able to show how you calculated your work-related kilometres. A simple trip diary or app report is enough, as long as it shows:
- date
- start and end locations
- distance
- work purpose
Remember: the cents-per-kilometre method includes all running costs, so you cannot claim fuel, registration, insurance, or depreciation separately under this method.
Business vs private kilometres
Only work-related kilometres are claimable. Regular home-to-work commuting is generally not deductible. If your trip is partly private, only the work-related part can be claimed.
Simple tracking habits that work
- Record trips as you go (not months later).
- Label each trip with a clear work purpose.
- Keep your odometer readings consistent.
- Save a backup export (PDF or CSV) at the end of each month.
Next step
Use our Kilometre reimbursement calculator to estimate your claim and compare cents-per-kilometre with the logbook method.
