Do you use your own car for work in Australia? If so, you may be able to claim a tax deduction for your work-related car expenses. This can mean more money back in your pocket.

But the rules can feel tricky. In this guide, we explain the ATO car rules in plain words. You will learn what counts as work travel, the two ways to claim, and when you need a logbook.

What car travel can you claim on tax?

First, the car rules in this article are for a "car". To the tax office (the ATO), a car is a vehicle made to carry less than one tonne and fewer than nine people. Most sedans, wagons and small SUVs fit this.

Next, the trip must be for work. Here are some trips you can usually claim:

• Driving from one job to another job.
• Driving from your normal workplace to see a client.
• Driving to a meeting, a training course or a work site that is not your normal workplace.
• Driving to pick up work supplies.
• Driving to work when you must carry big, heavy tools and there is nowhere safe to leave them at work.

Driving to and from work

Most people cannot claim the drive from home to their normal workplace. The ATO says this is a private trip, even if you live far away. It is still private if you do a quick work job on the way, or if you have no public transport.

There are a few exceptions, like carrying bulky tools. If you are not sure, ask us.

Way 1: The cents per kilometre method

This is the simple way. You count your work kilometres. Then you times them by a set rate from the ATO.

The rate covers all your car costs, like fuel, rego, insurance, servicing and wear and tear. So you cannot claim those costs on top.

For the 2024–25 and 2025–26 tax years, the rate was 88 cents per kilometre. The ATO can change the rate each year, so always check the rate for your year.

Things to know

• You can claim up to 5,000 work kilometres per car each year. Even if you drive more, 5,000 is the most you can claim with this way.
• You do not need a logbook.
• You do need to show how you worked out your kilometres. A diary, a calendar or a list of trips works well.

Way 2: The ATO logbook method

This way takes more work. But it can give you a bigger claim if you drive a lot for work.

Here is how it works:

1. You keep a logbook for 12 weeks in a row. It shows how much of your driving is for work.
2. This gives you your "work use" percent. For example, 60%.
3. You add up all your car costs for the year.
4. You claim your work use percent of those costs.

Car costs you can count include:

• Fuel and oil
• Rego and insurance
• Repairs and servicing
• Tyres
• Interest on a car loan
• Lease payments
• The drop in the car's value over time (called depreciation)

There is no 5,000 km limit with