motor vehicle deduction 2023

For Australia in 2022–23, the ATO lets you claim car costs two ways: the cents‑per‑kilometre method or the logbook method—choose your weapon wisely.

The cents‑per‑km rate is 78 cents per km (capped at 5,000 business km), tidy and simple, but you can’t stack fuel, servicing or depreciation on top. The logbook method claims the business‑use percentage of actual costs (fuel, rego, insurance, interest, maintenance) plus depreciation, but it’s capped by the ATO car limit of AUD $64,741 (2022–23).

Small businesses could use temporary full expensing for eligible vehicles first used by 30 June 2023 (passenger cars still respect the car limit; many utes with >1,000 kg payload aren’t “cars” for that cap). Keep a 12‑week logbook, receipts, and a straight face—home‑to‑office commuting usually isn’t deductible, no matter how heroic the traffic.

This is general info, not tax advice; check the ATO or your accountant before you let the calculator do burnouts.