Learn more about each of the methods below.

Cents per kilometre method
The ‘cents per kilometre’ method uses a set rate for each kilometre you travel for business and takes into account all of your vehicle’s running expenses including depreciation.

The rate is updated annually. You can check the current rate at Cents per kilometre method.

You won’t need to keep written evidence to show exactly how many kilometres you travelled, however you may need to explain how you worked out your costs.

Logbook method
If using this method, you will need to keep a logbook with a record of your travels for 12 continuous weeks. The 12-week period needs to be representative of your travel throughout the year.

The logbook will help you calculate the portion of your motor vehicle expenses that relate to your business use. You must record the odometer readings at the start and end of each income year and keep records of your actual fuel and oil costs. You can’t claim private use.

You can rely on a logbook for 5 years. So you can use the same logbook if your usage is the same each year, even if the car is replaced.

Actual cost method
The actual cost method is where you claim your business motor vehicle expenses based on the actual receipts, bills and other written evidence you have.

If you also use the vehicle privately, you will need to apportion the costs.