Can I Claim My Car With an ABN?

Quick answer

Yes, you may be able to claim car expenses with an ABN.

But only where the car is used for genuine business or income-producing travel.

Having an ABN does not automatically make your car deductible.

That would be lovely.

It would also be wrong.

If you use your car for ABN work, contractor jobs, client visits, delivery driving, rideshare work, trade jobs or other business travel, you may be able to claim the business-use portion of your car expenses.

The key is simple:

Business use may be deductible. Private use is not.

GoTax helps ABN workers, contractors, freelancers, self-employed workers and rideshare drivers complete tax returns online, with returns checked by registered tax agents before lodgement.

Start your ABN tax return online with GoTax

---

An ABN does not make every trip deductible

This is the big trap.

People get an ABN and suddenly the car becomes “for business”.

Not quite.

You need to look at the actual use of the car.

You may have a valid ABN.
You may have business income.
You may use the car sometimes for work.

But that does not mean every kilometre is deductible.

Private travel stays private.

Normal personal errands stay private.

The ATO does not say:

“Congratulations on your ABN. Your groceries are now business kilometres.”

If only.

---

When car expenses may be claimable with an ABN

Car expenses may be claimable where the travel is genuinely connected to earning your ABN or business income.

Examples may include:

• driving to a client site

• travelling between jobs

• travelling between worksites

• visiting customers

• driving to buy business supplies

• travelling to quote on work

• delivery driving

• rideshare driving

• travelling between business locations

• mobile service work

• carrying tools or equipment for business jobs

• attending business-related training away from your normal place of work

The key question is:

Was the travel part of earning business income?

If yes, it may be business use.

If no, it may be private.

Annoying distinction.

Important distinction.

---

Common trips that are usually private

These trips are usually private and should not be claimed just because you have an ABN:

• home to your regular workplace

• regular workplace back home

• school drop-offs

• grocery trips

• personal errands

• weekend private driving

• holiday travel

• visiting friends or family

• driving to the gym

• driving to lunch

• mixed-purpose trips where the private part has not been separated

An ABN does not turn your driveway into a business depot.

If the trip is really private, it stays private.

Even if you thought about work while driving.

Thinking about work is not a logbook method.

It is just stress with indicators.

---

Contractors and car claims

Contractors may be able to claim car expenses where the travel is part of their contracting work.

For example, a contractor may have business travel if they:

• travel between job sites

• visit client premises

• collect work materials

• attend business meetings

• inspect work locations

• travel to quote on jobs

• carry tools or equipment required for jobs

But contractors need to be careful with ordinary commuting.

If you drive from home to the same worksite every day, the travel may still be private, depending on the facts.

Putting “contractor” on the invoice does not automatically fix the travel.

Tax law is irritating like that.

If you are a contractor, start with the GoTax Contractor Tax Return page.

---

Rideshare and delivery drivers

Rideshare and delivery drivers have a different car-use pattern.

For many rideshare and delivery drivers, the car is central to earning income.

Business travel may include:

• carrying passengers

• making deliveries

• travelling between delivery jobs

• driving while logged into the platform and available for work

• driving connected with the rideshare or delivery activity

Private travel still needs to be separated.

That may include:

• personal trips

• commuting before starting work

• family driving

• shopping

• trips after logging off

• unrelated travel during the day

Rideshare and delivery drivers should keep strong records because car use can be significant.

A logbook is often worth considering.

So is not making it up later.

That second one is very important.

Use the GoTax Rideshare Tax Return page if you earn rideshare or delivery income.

---

Freelancers and self-employed workers

Freelancers and self-employed workers may also use a car for business.

Examples include:

• photographer travelling to shoots

• consultant visiting clients

• tutor travelling between students

• designer meeting clients

• cleaner travelling between jobs

• personal trainer visiting clients

• mobile hair or beauty worker visiting customers

• tradesperson travelling between jobs

But again, you need to separate business use from private use.

A freelancer driving to meet a client may have business travel.

A freelancer driving to the beach to “think creatively” probably does not.

Although it may be good for the soul.

The ATO is not generally funding the soul.

Freelancers can use the GoTax Freelancer Tax Return page.

Self-employed workers can use the GoTax Self-Employed Tax Return page.

---

The two main car claim methods

For many individuals and sole traders, there are two main methods for claiming car expenses:

Method	How it works
Cents per kilometre	Claim a set rate for eligible business kilometres, up to the cap
Logbook method	Claim the business-use percentage of actual car expenses

For the 2026 tax return, the cents per kilometre method uses the 2025–26 rate of 88 cents per eligible kilometre, up to 5,000 business kilometres per car.

The logbook method uses your actual car expenses and applies your business-use percentage.

If you want a deeper comparison, read the GoTax guide: Logbook vs Cents per Kilometre 2026

---

Cents per kilometre with an ABN

The cents per kilometre method is simpler.

You do not need a full logbook.

But you still need a reasonable basis for the business kilometres claimed.

Useful support may include:

• diary entries

• appointment records

• invoices

• job sheets

• delivery records

• rideshare or delivery app records

• client visit records

• work calendar entries

• odometer notes

• business travel summaries

The 5,000km cap is not a free deduction.

It is the maximum under that method.

You should only claim kilometres that were actually business-related.

“Maximum claim” does not mean “automatic claim”.

That is where people get excited.

Then the ATO gets interested.

Nobody enjoys the second part.

---

Logbook method with an ABN

The logbook method may produce a larger deduction where business use is high.

It can be especially relevant for:

• rideshare drivers

• delivery drivers

• tradespeople

• contractors travelling between jobs

• mobile service providers

• consultants visiting clients

• sole traders with significant work travel

A logbook generally records:

• dates of trips

• opening and closing odometer readings

• purpose of trips

• kilometres travelled

• business and private use

• total kilometres

• business-use percentage

You also need records of actual car expenses, such as:

• fuel

• servicing

• registration

• insurance

• repairs

• tyres

• loan interest, where relevant

• depreciation or decline in value

• parking for business trips

• tolls for business trips

The logbook method can be stronger.

It also needs stronger records.

A logbook written from memory after the year ends is not a logbook.

It is a short story.

Possibly fiction.

---

Can you claim fuel as well as cents per kilometre?

No.

If you use the cents per kilometre method, the rate already covers running costs.

That means you do not separately claim:

• fuel

• registration

• insurance

• servicing

• repairs

• tyres

• depreciation

• general running costs

If you want to claim actual running costs, you usually need to look at the logbook method.

Claiming cents per kilometre and then adding fuel on top is double dipping.

The ATO tends to notice that sort of thing.

Like a seagull notices chips.

---

What records should ABN workers keep?

If you claim car expenses with an ABN, keep records that support both:

• the business use, and

• the expense amount

Records may include:

• invoices

• receipts

• fuel records

• service records

• registration papers

• insurance records

• finance documents

• logbook records

• odometer readings

• toll statements

• parking receipts

• platform statements

• delivery records

• job records

• work calendar entries

• client appointment records

For ABN workers, it also helps if your business records line up.

For example, if you claim travel to 40 client jobs, your invoices or job records should not suggest you had five clients.

Numbers should tell the same story.

When they do not, the story gets audited.

---

Watch private use

Private use is the big issue.

Many cars are used for both business and private purposes.

Examples:

Car use	Treatment
Driving to a client	May be business
Driving between jobs	May be business
Driving for delivery work	May be business
School drop-off	Private
Grocery trip	Private
Weekend family use	Private
Holiday driving	Private
Normal personal errands	Private

You need to remove private use.

This is especially important where the same car is used by family members.

“Mostly business” is not a percentage.

“About 80%” is not much better unless you can support it.

The logbook exists for a reason.

Unfortunately, that reason is not joy.

---

What if the car is not actually a car?

The normal car expense methods apply to cars.

For tax purposes, different rules may apply to other vehicles, such as:

• motorcycles

• vans

• utes or trucks over certain limits

• vehicles designed to carry heavier loads

• vehicles designed to carry more passengers

This matters for some tradies and contractors.

A vehicle that looks like a “work vehicle” to you may not fit neatly into the normal car methods.

If your vehicle is outside the ordinary car rules, get advice before assuming the cents per kilometre method applies.

Tax law enjoys definitions.

Nobody knows why.

---

Common ABN car claim mistakes

Avoid these:

Mistake	Why it matters
Claiming all car costs because you have an ABN	Private use must be removed
Claiming 5,000km automatically	The cap is not automatic
No records for business kilometres	Weakens the claim
Claiming fuel on top of cents per kilometre	Double dipping
Using an old logbook after work patterns changed	Percentage may be wrong
Claiming family/private driving	Not business use
Ignoring rideshare or GST issues	Can create bigger problems
No odometer readings	Weakens logbook claims
Claiming normal commuting	Often private
Copying last year’s claim	Facts change

The safest claim is not always the biggest claim.

It is the claim you can explain.

With records.

Preferably before the ATO asks.

---

How GoTax helps

GoTax helps ABN workers complete tax returns online, including car expense claims.

The system prompts you through relevant income and deduction areas, and your return is checked by registered tax agents before lodgement.

That can help with common ABN car issues such as:

• choosing the right method

• checking business use

• avoiding private-use claims

• identifying weak records

• avoiding double dipping

• considering rideshare or delivery issues

• keeping the car claim consistent with the rest of the return

GoTax does not make unsupported claims safe.

It helps you lodge properly.

That is the better plan.

Start your ABN tax return online with GoTax

---

Quick checklist before claiming your car with an ABN

Before claiming car expenses, ask:

• Did I use the car to earn ABN income?

• Which trips were business-related?

• Which trips were private?

• Do I have kilometre records?

• Do I have a logbook if using the logbook method?

• Do I have receipts for actual expenses?

• Did I avoid claiming fuel on top of cents per kilometre?

• Did I exclude normal private travel?

• Did I separate family or personal use?

• Do my invoices or job records support the travel?

• Am I using the right GoTax return type?

If you cannot answer those questions, pause before claiming.

A car deduction is useful.

A car deduction with no support is just trouble with wheels.

---

Frequently asked questions

Can I claim my car if I have an ABN?

Yes, but only for genuine business or income-producing use. Having an ABN does not make all car use deductible.

Can I claim 100% of my car with an ABN?

Only if the car is genuinely used 100% for business and you have records to support that. Most people have some private use, which must be removed.

Can I use cents per kilometre for ABN income?

Many individuals and sole traders may be able to use the cents per kilometre method for eligible business kilometres, subject to the rules and cap.

What is the cents per kilometre rate for the 2026 tax return?

For the 2026 tax return, the 2025–26 rate is 88 cents per eligible kilometre, up to 5,000 business kilometres per car.

Do I need a logbook with an ABN?

You do not need a full logbook for the cents per kilometre method, but you still need a reasonable basis for the kilometres claimed. If using the logbook method, you need a proper logbook.

Can rideshare drivers claim car expenses?

Yes, rideshare drivers may be able to claim business-related car expenses, but private use must be separated and GST issues may also need to be considered.

Can contractors claim travel from home to work?

Not always. Ordinary home-to-work travel is often private, even for contractors. The answer depends on the facts, work pattern and purpose of the travel.

Can I claim fuel as well as cents per kilometre?

No. The cents per kilometre rate already covers car running costs. Fuel is not claimed separately under that method.

Does GoTax help with ABN car claims?

Yes. GoTax helps ABN workers, contractors, freelancers, self-employed workers and rideshare drivers complete tax returns online, with returns checked by registered tax agents before lodgement.

---

About the Author

Written by Mark Walmsley, Chartered Accountant and Registered Tax Agent.

GoTax helps Australians complete their tax returns online, with returns checked by registered tax agents before lodgement.

---

General Information Disclaimer

This article provides general information only and does not take into account your personal circumstances. Tax law can change and deduction eligibility depends on your income, business activity, car use, records, GST position and specific facts. If you are unsure, seek advice from a registered tax agent.