For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.

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    TaxKiln Australia
    Audit + compliance

    Logbook vs Cents-per-Kilometre — Choosing the Right Motor Vehicle Deduction Method

    Sole traders and partners using their car for business have two methods: cents-per-kilometre (capped at 5,000 km/year) or logbook (no cap, but requires 12 weeks of records every 5 years plus ongoing odometer logs).

    Decision rule

    If you drive under 5,000 km for business and don't want the receipts paperwork → cents-per-km.

    If you drive over 5,000 km business OR have a higher-cost car (fuel + services + insurance + depreciation) → logbook usually wins by a wide margin.

    ATO on car claims

    The ATO cross-references car logbook claims against toll-road data (Linkt, EastLink), fuel-card purchases, and rideshare platform trip data. Inflated business-use percentages are a known audit trigger. See the ATO programs guide.

    Cross-references

    Run the side-by-side in the Motor Vehicle Deduction Calculator.

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