vehicle expenses ato

The ATO lets you claim car expenses for work use, but not the soul-crushing commute to your usual workplace. You’ve got two methods: cents‑per‑kilometre (a fixed rate set each year, capped at 5,000 business km per car) or the logbook method (keep a 12‑week logbook, get your business‑use percentage, then apply it to costs). Eligible costs can include fuel, servicing, tyres, rego, insurance, interest, depreciation/decline in value, plus tolls and parking when they’re work‑related. Cents‑per‑km is simple and bakes most costs into the rate; logbook can pay off if your work use is high, but it demands odometer readings, receipts and a stiff upper lip. Keep evidence for five years, and remember private trips are out; client visits and trips between workplaces are in. If your employer reimburses you or you salary‑package, your claim changes—so double-check the latest ATO guidance before your calculator gets cocky.