Australia · Tax basics

Australia: mileage, vehicle expenses and tax records

Cents per kilometre or logbook

How the local rules work

Sole traders and eligible partnerships claiming car expenses can use the cents-per-kilometre or logbook method. Other vehicle types and business structures have different rules.

What to keep

Keep evidence of business kilometres. For a logbook claim, follow ATO logbook and odometer requirements and save actual expense evidence.

What the odometer message means

The app needs total vehicle distance, including personal driving, to estimate business use. Enter beginning and ending odometer readings for the same vehicle and reporting period. Missing total distance means the percentage is incomplete; it does not erase your recorded business trips.

Example · same vehicle, same period

Business distance12,000

Total distance15,000

Business use80%

80% business · 20% personal

12,000 ÷ 15,000 × 100 = 80%. Use miles or kilometres consistently. This is a usage ratio, not automatic permission to deduct 80% of every cost.

Avoid this mistake

The cents-per-kilometre method has a business-kilometre limit. Do not assume it covers every kilometre you drive or add operating costs already covered by it.

Prepare your records in Free Mile Tracker

Select your country and the correct reporting period.
Review each trip and distinguish business from personal driving.
Add dated odometer readings and keep supporting expense documents.
Export your records and compare them with platform statements before filing.

A business-use percentage helps organize mixed-use records. Whether it can be used for a deduction depends on Australia’s rules and your filing method.

Official guidance

ATO: source for this guide

Source checked October 8, 2026. Confirm the applicable tax year on the official site before filing.