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Claiming your car on your Tax Return

December 12, 2023

Claiming your car on your Tax Return

If you need to use your car for work. i.e. running errands, driving to other work locations, visiting customers or you carry bulky equipment that can't be left at work, you may be able to claim a tax deduction.

Car expenses on your etax return

There are two ways you can claim your car expenses as tax deductions:

  • The Easy Way

  • The Hard Way

The Easy Way

The easy way to claim your car usage is using what the ATO call the "Cents per Kilometre" method. 

  • Keep a diary of where you travelled, 
  • Total up the kilometres at the end of the year
  • Claim up to 5000KMs at 68c per kilometre. 


"We will help you get the best tax deduction possible!"


The Hard Way

The hard way to claim your car usage is what the ATO call the "Logbook Method" 

Although this method is a more complex way of calculating your car claim, you may get a bigger refund.

For this method you will need to keep a logbook for 12 consecutive weeks, and for the logbook to be ATO valid you will need to list down the following information:

  • Date you travelled

  • Why you travelled (don’t say “work”)

  • From where

  • To where

  • Odometer start and end

  • KM’s travelled

Your logbook determines what percent you can claim for the following expenses:

  • Fuel

  • Registration & Insurance

  • Repairs & Maintenance

  • Interest on car loan

  • Depreciation (where you claim the cost of your car over a number of years)

  • Lease payments

READ: What is Income Tax?

Preparing your tax return

Take advantage of our easy-to-use etax system, enter in your car expense details, let us do all the calculations and we will claim the best tax deduction for you.

Claim your car expenses back with ease!
GoTax Onlines etax return system will help you get the best tax result possible!

Track your car's useage with Gotax Deduction Grabber

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Gotax Deduction Grabber

Claiming your car on your Tax Return

Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.

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