Car Expenses Calculator
Whether cents per kilometre or a logbook gives the bigger car deduction, and the tax it saves.
The logbook method gives the bigger deduction: $4,800, which saves about $1,536 in tax. Cents per km at 91c gives $3,640; a logbook gives $4,800.
Cents per kilometre: business kilometres, up to 5,000, times the ATO rate for the year (91c). The rate covers all running costs and depreciation, so nothing else is claimed. Logbook: your total car costs times the business-use percentage from a 12-week logbook. The tax saving uses your marginal rate, including the Medicare levy.
Rates checked September 2026 against the ATO.
The two ways to claim a car
Cents per kilometre: claim a set rate for each work or business kilometre, up to 5,000 km a car. The rate is 91c for 2026-27 and 88c for 2024-25 and 2025-26. It covers every running cost, including depreciation, so you can't claim anything else for the car. You don't need a logbook, but you need to show how you worked out the kilometres, such as a diary.
Logbook: keep a logbook for a continuous 12 weeks to work out the business-use percentage, then claim that share of all your car costs: fuel, rego, insurance, servicing, loan interest and depreciation. A logbook can be used for five years if your driving doesn't change much. It's the only option for claiming more than 5,000 km.
What counts as work or business travel
Travel between jobs or clients, to pick up supplies, or carrying bulky tools counts. Driving between home and a regular workplace usually doesn't, even if you work on the way.
Frequently asked questions
91 cents per kilometre: a base rate of 89c plus a one-off 2c increase for 2026-27. It was 88c for 2024-25 and 2025-26.
5,000 km per car, so $4,550 in 2026-27. Above that you need a logbook.
Cents per km is simpler and often better for a cheap car or low kilometres. A logbook usually wins for an expensive car, high running costs or a high business-use percentage. The calculator compares both.
Yes. The same two methods apply to work-related car expenses for employees, as long as the travel is part of your work.