How can I claim car and motor vehicle expenses in Australia?

If you use your car for business (excluding commuting from home to your regular workplace), you can claim a deduction using one of two methods: 1. **Cents per Kilometre Method:** You can claim 85 cents per business kilometre (for 2023-24 and 2024-25) up to a maximum of 5,000km per year. You don't need receipts, but you must be able to show how you calculated the distance (e.g., a diary of trips). 2. **Logbook Method:** You keep a logbook for at least 12 continuous weeks to establish a 'business use percentage'. You then claim that percentage of all car expenses (fuel, rego, insurance, repairs, interest, depreciation). This is usually better if you drive a lot for work. Note: If your vehicle is not a 'car' (e.g., a van or ute with carrying capacity > 1 tonne), you must use the actual cost method and keep records.

• Cents per km: 85c/km up to 5,000km (no receipts needed)
• Logbook: claim business % of all costs (requires 12-week log)
• Commuting (home to work) is generally NOT deductible
• Fines and tickets are never deductible
• Method can be changed each year to maximize deduction