The Logbook Method: How to Claim Work-Related Car Expenses

The logbook method: how to claim work-related car expenses

Why keeping a car logbook matters

Where a vehicle is used for income‑producing purposes, car expenses may form part of a valid tax deduction. The logbook method is used to establish the business‑use percentage of a vehicle so that expenses are claimed accurately and in line with ATO requirements.

Maintaining a compliant logbook helps support deductions, improves record‑keeping, and reduces the risk of errors or issues if claims are reviewed.

If you use your car for work or business purposes, you may be entitled to claim a tax deduction for car expenses.

The Australian Taxation Office (ATO) allows two main methods to claim car expenses:

  • the cents per kilometre method, and
  • the logbook method.

This page explains how the logbook method works, when it’s required, and why it can provide a more accurate basis for claiming work‑related car expenses.

Claiming car expenses for work or business

You can generally claim car expenses when you use your vehicle for:

  • travelling between separate work locations,
  • visiting clients or customers,
  • running a business or managing income-producing activities.

You cannot usually claim:

  • normal trips between home and work (with limited exceptions),
  • private or personal travel.

Choosing the correct method is important, as it affects what you can claim and what records you must keep.

Example of the logbook method in practice

A small business owner uses their car for a mix of business and personal travel. After keeping a compliant logbook for the required period, it shows that a portion of the vehicle’s use relates to income‑producing activities.

That business‑use percentage is then applied to eligible car expenses when preparing the tax return.

Expenses covered under the logbook method

Once a valid business‑use percentage is established using a logbook, that percentage is applied to eligible car‑related expenses.

Depending on individual circumstances, these expenses may include:

  • fuel and oil
  • maintenance and repairs
  • insurance and registration
  • interest on a car loan or lease payments
  • decline in value (depreciation)

Only the business portion of these costs, as determined by the logbook, is claimable.

Logbook method vs cents per kilometre

Cents per kilometre method

  • Uses a fixed rate per kilometre (up to the annual limit).
  • No need to keep full receipts for running costs.
  • You cannot separately claim fuel, insurance, registration or depreciation.
  • Often suits occasional or low business use.

Logbook method

  • Based on the actual business-use percentage of your vehicle.
  • Allows you to claim a portion of:
    • fuel
    • servicing and repairs
    • insurance and registration
    • interest (if applicable)
    • depreciation
  • Requires more record-keeping, but often results in a higher deduction.

For many business owners and professionals, the logbook method is more beneficial where a vehicle is used regularly for work.

How the logbook method works

1. Keep a logbook for 12 continuous weeks

During the logbook period, record:

  • date of each trip,
  • start and end odometer readings,
  • purpose of the trip,
  • whether the trip was work-related or private.

The logbook period must be continuous and representative of your normal usage.

2. Calculate your business-use percentage

At the end of the 12 weeks, your logbook shows the proportion of kilometres that are work-related.

For example, if 65% of your kilometres are for work, you can generally claim 65% of eligible car expenses.

Once completed, a logbook can usually be used for up to five years, provided your usage pattern does not change significantly.

3. Keep receipts and records

You must keep records for all car expenses you intend to claim, including fuel, servicing, insurance, registration, interest and depreciation details.

Short explanation: logbook method

Download Logbook

Why the logbook method matters

Using the logbook method correctly can:

  • support accurate and legitimate car expense claims,
  • reduce the risk of ATO adjustments,
  • provide strong evidence if your claim is reviewed,
  • ensure depreciation is claimed correctly over time.

Many errors with car expense claims come from poor records or using the wrong method.

Detailed ATO guidance on car expense claims can be found here:


ATO – Work-related car expenses

Need help?

If you’re unsure which method applies to your situation or whether keeping a logbook is worthwhile, we can help ensure your car expenses are claimed accurately and compliantly as part of your tax return.

This is commonly relevant when preparing

individual tax returns

or managing

business tax obligations
.