July 6, 2026

Logbook vs Cents per Kilometre: Which Car Claim Method Should You Use in 2026?

Q: What is better, logbook or cents per kilometre?

It depends on your work use, car costs and records. The cents per kilometre method is simpler and suits lower work use. The logbook method may give a larger deduction if you use your car heavily for work, have high running costs and keep strong records including a valid 12-week logbook.

Q: What is the cents per kilometre rate for 2026?

For the 2025-26 income year, the ATO cents per kilometre rate is 88 cents per eligible work kilometre, capped at 5,000 work-related kilometres per car. The rate already covers running costs including fuel, servicing, registration, insurance and decline in value.

Q: Do I need a logbook for the logbook method?

Yes. The logbook method requires a proper logbook and written records of actual car expenses. The logbook is used to calculate your work-related use percentage, which is then applied to your total annual car running costs to determine the deductible amount.

Q: Can ABN holders use the logbook method?

Yes, ABN holders and sole traders may be able to use the logbook method for business-related car use, provided records are kept and private use is separated from business use. The logbook method can be particularly useful for ABN holders with high work use and significant running costs.

Quick answer

For your 2026 Australian tax return, there are two main ways to claim work-related car expenses: the cents per kilometre method and the logbook method.

The cents per kilometre method is simpler. For the 2025–26 income year, the ATO rate is 88 cents per eligible work kilometre, capped at 5,000 work-related kilometres per car.

The logbook method is more detailed. It uses your actual car expenses and applies your work-related use percentage based on a proper logbook.

So which one is better?

Usually:

Method	Best for
Cents per kilometre	Lower work kilometres and simpler claims
Logbook method	Higher work use, higher costs and better records

The bigger claim is not always the better claim.

The better claim is the one you can actually support.

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

Start your 2026 tax return online with GoTax

Why this matters

Car expense claims are one of the easiest areas to get wrong.

People either:

forget eligible work kilometres
claim normal home-to-work travel
claim 5,000 kilometres because it sounds nice
use the wrong method
lose their records
double dip fuel and cents per kilometre
use a logbook that no longer matches their work pattern

Excellent news if your hobby is ATO attention.

Less excellent if you prefer a clean tax return.

Before choosing a method, read the broader GoTax guide: Car Expense Tax Deductions Explained for 2026.

The two car expense methods

For individuals claiming car expenses, the two main methods are:

Method	How it works
Cents per kilometre	You claim a set rate for eligible work kilometres, up to the annual cap
Logbook method	You claim the work-related percentage of actual car expenses

You cannot use both methods for the same car in the same income year.

That would be double dipping.

The ATO is not fond of double dipping, unless it is probably salsa. Even then, it would want records.

Method 1: Cents per kilometre

The cents per kilometre method is the easier method.

For the 2025–26 income year, the ATO’s cents per kilometre method uses 88 cents per eligible work kilometre.

The maximum claim is 5,000 work-related kilometres per car.

That means the maximum deduction under this method is:

5,000 km × $0.88 = $4,400

Work-related kilometres	Calculation	Deduction
500 km	500 × $0.88	$440
1,000 km	1,000 × $0.88	$880
2,500 km	2,500 × $0.88	$2,200
5,000 km	5,000 × $0.88	$4,400

The rate covers your car running costs, including fuel, servicing, registration, insurance and decline in value.

That means you do not claim fuel, servicing or registration separately when using this method.

The cents per kilometre method is simple.

It is not “claim 5,000km because the button exists”.

That is not a method. That is tax karaoke.

Do you need a logbook for cents per kilometre?

No, you do not need a full logbook for the cents per kilometre method.

But you still need a reasonable basis for your work-related kilometres.

The ATO can ask how you calculated the claim.

Useful records may include:

diary entries
work calendar
rosters
job sheets
delivery records
client visit notes
employer records
appointment logs
odometer notes
work travel summaries

Example:

Mia drove from her office to client sites during the year. Her calendar shows 44 client trips, each around 18 kilometres return.

44 × 18km = 792 eligible work kilometres

792km × $0.88 = $696.96 deduction

That is a sensible calculation.

Much better than “I feel like I drove a lot”.

Feelings are important. Not usually deductible.

Method 2: Logbook method

The logbook method can give a larger claim if you use your car heavily for work and keep strong records.

The ATO’s logbook method requires you to work out your work-related use percentage using a logbook.

Broadly, you keep a logbook for a continuous 12-week period that represents your normal use of the car.

You then apply that work-related percentage to your actual car expenses.

Example:

Item	Amount
Total car expenses	$9,000
Work-related use from logbook	65%
Deductible amount	$5,850

That can be better than cents per kilometre.

But only if the records are proper.

A logbook is not a spiritual document. It needs actual entries.

What expenses can the logbook method include?

Under the logbook method, you may be able to claim the work-related percentage of actual car expenses such as:

fuel
servicing
repairs
tyres
registration
insurance
car washing where genuinely work-related
interest on a car loan
decline in value
roadside assistance
tolls for eligible work trips
parking for eligible work trips

You need written evidence for actual expenses.

Fuel and oil can sometimes be worked out from odometer records, but proper records are still safer.

The logbook method rewards good record-keeping.

It punishes glovebox archaeology.

Cents per kilometre vs logbook: quick comparison

Feature	Cents per kilometre	Logbook method
Complexity	Lower	Higher
Maximum kilometres	5,000 eligible work km per car	No 5,000km cap
Rate	88 cents per eligible work km for 2025–26	Actual costs × work-use percentage
Fuel receipts needed	No separate fuel claim	Usually needed or supported
Logbook required	No full logbook	Yes
Best for	Simpler, lower-use claims	Higher work use and stronger records
Risk	Overstating kilometres	Poor logbook or poor expense records
Common mistake	Claiming max 5,000km without basis	Claiming private use as work use

The cents per kilometre method is easier.

The logbook method may be stronger.

The ATO prefers whichever one you can prove.

Rude, but fair.

Which method gives the bigger deduction?

The answer depends on your facts.

Here are simple examples.

Example 1: Low work use

Alex drives 1,200 eligible work kilometres during the year.

Using cents per kilometre:

1,200km × $0.88 = $1,056

Alex has low work use and does not keep detailed car expense records.

The cents per kilometre method may be the better practical option.

Example 2: Higher work use

Taylor uses their car heavily for work and has a valid logbook.

Total annual car expenses: $10,000
Work-related use: 70%

Logbook method:

$10,000 × 70% = $7,000 deduction

Cents per kilometre maximum:

5,000km × $0.88 = $4,400

In this example, the logbook method may be better.

Same car. Different records. Different result.

Tax is fun like that.

When the cents per kilometre method usually makes sense

The cents per kilometre method may suit you if:

your work travel is under 5,000 kilometres
you have a reasonable basis for work kilometres
your car expenses are not unusually high
you did not keep a valid logbook
you want the simpler method
your work travel is occasional
your claim is mainly employee work travel

It can work well for people who occasionally drive:

between work sites
to client meetings
to training away from the normal workplace
between jobs
to collect work supplies
for genuine work duties

But it does not cover normal commuting.

Driving from home to your regular workplace is usually private travel.

That rule survives every year, despite everyone’s emotional objections.

The ATO explains which trips you can and cannot claim in its guide to work-related car trips.

When the logbook method usually makes sense

The logbook method may suit you if:

you use your car heavily for work
you drive more than 5,000 eligible work kilometres
your fuel, servicing and insurance costs are high
you keep strong records
you have ABN or contractor income
your work pattern is consistent
you want to compare the actual cost result
your car is genuinely used significantly for work or business

The logbook method is often worth considering for:

tradies
support workers travelling between clients
sales representatives
mobile workers
contractors
sole traders
rideshare drivers
delivery drivers
consultants visiting client sites

But it needs discipline.

A logbook started after you realised your tax refund looked sad may not help for the year already gone.

What does a logbook need to show?

A logbook should show details such as:

start and end dates for the logbook period
odometer readings at the start and end
dates of trips
purpose of each trip
kilometres travelled
whether trips were work-related or private
total kilometres
work-related kilometres
work-use percentage

You also need annual odometer readings so the work-related percentage can be applied properly to the year.

A good logbook tells the story clearly.

A bad logbook says:

“Many work trips. Trust me.”

This is not ideal as a tax strategy.

Can you use an old logbook?

A logbook can often be used for more than one year if your work use pattern has not changed materially.

But if your circumstances change, the old logbook may no longer be valid.

Changes can include:

new job
different work location
more remote work
fewer client visits
more private use
new business activities
different vehicle use pattern
change from employee to contractor
change in duties

If your old logbook says 75% work use, but you now work from home three days a week and visit clients twice a month, that old percentage may be living in the past.

Like your LinkedIn photo.

Can you claim 5,000 kilometres without a logbook?

You do not need a logbook to use the cents per kilometre method.

But you do need to show how you calculated your eligible work-related kilometres.

The 5,000km cap is the maximum.

It is not the starting point.

You may be able to claim 5,000 kilometres if you genuinely travelled at least 5,000 eligible work kilometres and can support the calculation.

You should not claim 5,000 kilometres simply because that is the highest number the method allows.

That is not maximising deductions.

That is waving a flag.

What trips can you include?

Eligible work-related car travel may include:

driving between separate workplaces
driving from your workplace to a client site
travelling between client appointments
driving from one job site to another
travelling to a work-related conference away from your normal workplace
using your car for ABN or business income
collecting work supplies where the travel is part of your work duties

Trips that are usually private include:

home to regular workplace
regular workplace to home
school drop-off on the way to work
personal errands
weekend private driving
travel reimbursed by your employer

The words “work was involved” are not enough.

The trip needs to be part of earning income, not just part of getting yourself to the place where income happens.

Annoying distinction. Big consequences.

What about bulky tools?

Home-to-work travel may be deductible in limited cases where you need to carry bulky tools or equipment and strict conditions are met.

This does not apply just because you carry a laptop, lunchbox or small bag.

The issue is usually whether:

the equipment is bulky
the equipment is required for work
there is no secure storage at work
the travel is necessary because of the equipment
the claim is properly supported

A laptop is not bulky equipment.

A ladder may be.

A sandwich is definitely not.

Can ABN holders use these methods?

Yes, many sole traders and some business operators may be able to use car expense methods for business-related car use.

But ABN claims need to be handled carefully.

The claim must relate to earning business income, and private use must be separated.

ABN holders should check:

business kilometres
private kilometres
logbook records
fuel and servicing records
invoices and job records
whether the vehicle is a car for tax purposes
whether GST or business rules also apply

If you earn ABN income, read the GoTax ABN Tax Deductions Guide.

Having an ABN does not turn every trip into a business trip.

It just gives you a more serious way to make mistakes.

Can rideshare and delivery drivers use cents per kilometre?

Rideshare and delivery drivers often use their cars heavily, so the logbook method may produce a better result.

The cents per kilometre method is capped at 5,000 eligible work kilometres per car. Many rideshare and delivery drivers exceed that.

A logbook can help separate:

rideshare work use
delivery work use
private use
commuting or positioning travel
mixed-purpose trips

Good records matter because the car is often the main business tool.

No records, no sympathy.

Tax law is not a support group.

Can you claim fuel as well as cents per kilometre?

No.

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

That means you do not separately claim:

fuel
servicing
registration
insurance
depreciation
repairs

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

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

It may feel satisfying.

So does putting your feet on the dashboard. Still a bad idea.

What if you lost your records?

If you lost records, the best method may change.

For cents per kilometre, you need a reasonable basis for your eligible work kilometres.

For logbook, you need stronger records, including the logbook and evidence of actual expenses.

If receipts are missing, other records may help, such as:

bank statements
supplier invoices
service records
insurance documents
registration records
app records
odometer readings
email receipts

But substitute records are not magic.

A bank statement may show you paid a mechanic. It may not prove the work-related percentage.

Read the GoTax guide: Can You Claim Tax Deductions Without Receipts in 2026?

Common mistakes when choosing a method

Avoid these:

Mistake	Why it matters
Claiming 5,000km automatically	The cap is not a free claim
Claiming home-to-work travel	Usually private
Using cents per km and claiming fuel	Double dipping
Using an old logbook after duties changed	Percentage may be wrong
No odometer readings	Weakens logbook claim
No evidence of work kilometres	Weakens cents per km claim
Claiming reimbursed expenses	You did not bear the cost
Claiming private trips	Not deductible
Choosing the bigger number without proof	Risky

The best method is not the one with the biggest number on paper.

It is the one with the strongest records behind it.

Very boring. Very useful.

Which method should you choose?

Use this simple decision table.

Your situation	Method to consider
You drove fewer than 5,000 eligible work kilometres	Cents per kilometre may be enough
You did not keep a valid logbook	Cents per kilometre may be the only practical option
You have high work use and good records	Logbook method may be better
You have high running costs	Logbook method may be better
You are a rideshare or delivery driver	Logbook method may be worth checking
You are an employee with occasional work trips	Cents per kilometre may be simpler
You have mixed private and work use	Either method, but records matter
You are unsure	Compare both if records allow

The obvious answer:

If you have strong records, compare both methods.

If you do not have strong records, do not pretend that you do.

Pretending is for children and LinkedIn profiles.

Quick comparison example

Jordan used his car for work during the year.

He has 3,800 eligible work kilometres.

Cents per kilometre

3,800km × $0.88 = $3,344

Logbook method

Jordan’s total car expenses were $7,500.

His logbook shows 40% work use.

$7,500 × 40% = $3,000

In this case, cents per kilometre gives the higher claim.

Now change the facts.

If Jordan’s work use was 65%:

$7,500 × 65% = $4,875

Now the logbook method may be better.

That is why guessing is lazy and comparing is useful.

Where this fits in your 2026 tax return

Your car expense method is only one part of your tax return.

You should also review:

working-from-home expenses
phone and internet
tools and equipment
uniforms and protective clothing
union fees
professional memberships
donations
tax agent fees
income protection insurance
ABN deductions
rental property expenses

Read the broader GoTax guide: What Tax Deductions Can You Claim in Australia in 2026?

You can also start from the main Tax Deductions Australia hub.

How GoTax helps

GoTax helps you work through your tax return online, including car expense claims.

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

That helps you avoid common problems like:

claiming normal commuting
choosing the wrong method
double dipping fuel
missing work kilometres
using weak records
forgetting related deductions

The goal is not to make the biggest claim.

The goal is to claim what you are entitled to and have the records to back it up.

Start your 2026 tax return online with GoTax

Quick checklist before claiming car expenses

Before you finalise your car claim, ask:

Did I use my car for genuine work-related travel?
Did I exclude normal home-to-work travel?
Was I reimbursed?
Do I have kilometre records?
Do I have a valid logbook if using the logbook method?
Did I record odometer readings?
Did I keep receipts for actual expenses?
Did I separate private and work use?
Did I avoid claiming fuel on top of cents per kilometre?
Did I compare both methods where possible?
Can I explain the claim if the ATO asks?

If you can answer those properly, you are in much better shape.

If not, maybe do not let “she’ll be right” prepare your return.

She won’t.

Frequently asked questions

What is better, logbook or cents per kilometre?

It depends on your work use, car costs and records. Cents per kilometre is simpler. The logbook method may give a larger claim if you use your car heavily for work and have strong records.

What is the cents per kilometre rate for 2026?

For the 2025–26 income year, the cents per kilometre rate is 88 cents per eligible work kilometre, capped at 5,000 work-related kilometres per car.

Can I claim 5,000 kilometres without a logbook?

You do not need a logbook for the cents per kilometre method, but you still need a reasonable basis for your eligible work-related kilometres. The 5,000km amount is a cap, not an automatic deduction.

Do I need fuel receipts for cents per kilometre?

No. The cents per kilometre rate already covers running costs such as fuel, servicing, registration, insurance and decline in value. You do not claim fuel separately under this method.

Do I need a logbook for the logbook method?

Yes. The logbook method requires a proper logbook and records of actual car expenses. The logbook is used to calculate your work-related use percentage.

How long does a logbook need to run?

A logbook generally needs to cover at least 12 continuous weeks and represent your normal use of the car.

Can I use an old logbook?

You may be able to use an old logbook if your work use pattern has not changed materially. If your duties, travel or work pattern changed, the old logbook may no longer be reliable.

Can I claim home-to-work travel?

Usually no. Ordinary travel between home and your regular workplace is generally private. Limited exceptions can apply, such as carrying bulky tools where strict conditions are met.

Can ABN holders use the logbook method?

Yes, ABN holders may be able to use the logbook method for business-related car use, provided records are kept and private use is separated.

Does GoTax check car expense claims?

Yes. GoTax helps you complete your tax return online, and returns are checked by registered tax agents before lodgement.

About the Author

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