Short answer
The logbook method is one of two ways to claim car expenses for work, alongside the cents per kilometre method. For drivers covering more than ~5,000 work km/year, logbook almost always wins — often by thousands of dollars.
Logbook method = actual car costs × work-use %.
You need:
Once recorded, the 12-week logbook is valid for 5 financial years (unless your driving pattern materially changes).
When logbook beats cents per km
| Annual work km | Cents per km claim (88¢, capped 5,000 km) | Logbook claim (rough estimate, mid-range car) |
|---|---|---|
| 2,000 | $1,760 | ~$2,500-3,500 |
| 5,000 | $4,400 (cap) | ~$5,000-7,500 |
| 10,000 | $4,400 (capped) | ~$9,000-12,000 |
| 20,000 | $4,400 (capped) | ~$15,000-22,000 |
If you're an Uber Eats driver, FIFO worker driving site-to-site, salesperson visiting clients, or any role with significant work driving — logbook.
Step 1: Record your 12-week logbook
Continuous 12 weeks, any time in the year. For each trip:
| Date | Start odo | End odo | Km | Purpose |
|---|---|---|---|---|
| 1 Jul 2025 | 45,210 | 45,238 | 28 | Visit client X (work) |
| 1 Jul 2025 | 45,238 | 45,250 | 12 | Drive home (personal) |
| 2 Jul 2025 | 45,250 | 45,280 | 30 | Visit client Y (work) |
Notes:
- Purpose must distinguish work vs personal clearly
- Driving from home to your first job of the day = NOT work (commuting). Work-to-work travel during the day = YES work.
- Apps: Driversnote, Logbook Plus, MileIQ — they auto-detect trips and let you tag work/personal in seconds
Calculate your business-use percentage:
```
work km in 12 weeks ÷ total km in 12 weeks = business-use %
```
Example: 1,800 work km out of 3,000 total km = 60% work use.
This 60% applies to all car expenses for the whole financial year, not just the 12-week period.
Step 2: Track all car expenses
Keep receipts and invoices for:
| Category | What to track |
|---|---|
| Fuel | Petrol/diesel for the entire year — receipts or bank/credit card statement |
| Registration | Annual rego notice |
| Insurance | Comprehensive insurance premium (CTP optional — usually bundled with rego) |
| Repairs and maintenance | Service receipts, tyre purchases, mechanical work |
| Depreciation | Effective life of car (typically 8 years for passenger vehicles); ATO (ATO guidelines) formula |
| Interest on car loan | Annual interest statement from your lender |
| Lease payments | Operating lease — payment minus the GST/interest component |
| Car wash, parking, tolls | Only the work-related portion |
Add them all up = total annual car running costs.
Step 3: Calculate your deduction
```
Annual car expenses × business-use % = your deduction
```
Example:
- Fuel: $3,800
- Rego: $850
- Insurance: $1,200
- Repairs: $650
- Depreciation: $5,200 (40k car over 8 years pro-rated)
- Interest: $1,800
- Total annual costs: $13,500
- × 60% work use = $8,100 deduction
vs cents per km at 5,000 km cap = $4,400.
Common mistakes
- ❌ Forgetting the 12-week minimum (a 4-week logbook is invalid)
- ❌ Claiming commuting (home → first work site) as work
- ❌ Missing one or more car expense categories (depreciation is the most-missed)
- ❌ Treating personal trips as work (e.g. "I had a work call in the car")
- ❌ Not keeping fuel receipts (bank statement is OK as a fallback but receipts are stronger)
Records to keep (5 years)
- 12-week logbook
- All fuel + service receipts
- Annual rego + insurance documents
- Loan statements showing interest
- Photos of odometer at start and end of FY
When you should use a Tax Agent
Logbook method works for DIY in myTax, but consider an Agent if:
- You bought the car this year (depreciation pool decision + GST credit if business-registered)
- You sold the car this year (potential balancing adjustment + CGT on luxury vehicles)
- You use the car for both an employed role + a side ABN gig (apportionment between two work uses)
- Salary-sacrificed novated lease (FBT + reportable fringe benefits)
- Mid-year change in car (two cars, two logbooks, prorated depreciation)
Need a professional? Browse every TPB-registered tax agent near you in the AusTax directory, or post a request and matching practices will contact you — free.
See Uber Eats guide and main decision guide.
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
This is general information only. Car depreciation and complex scenarios benefit from a TPB Registered Tax Agent's input.