Work-Related Car Expense Calculator
Calculate a work-related car expense deduction with the ATO cents-per-kilometre method and its annual cap, or the logbook method using business-use percentage.
Your results
Calculation breakdown
- Deduction
- min(3,000, 5000 cap) × $0.91 × 1 car(s) = $2,730.00
Assumptions
- Cents-per-kilometre method: 2026–27 · Source: Australian Taxation Office · Last verified 2026-07-01
- The cents-per-kilometre method caps claimable kilometres at 5000 per car, per year.
- The logbook method requires a valid 12-week logbook to substantiate the business-use percentage.
How this calculator works
Claiming work-related car expenses in Australia generally means choosing between two ATO methods. The cents-per-kilometre method applies a single published rate to the work-related kilometres you travelled, up to an annual cap per car, and requires only a reasonable basis for the kilometres claimed rather than a full logbook. The logbook method instead applies your actual business-use percentage, calculated from a valid 12-week logbook, to your total car running costs including fuel, servicing, insurance, registration and decline in value, which can produce a larger deduction for cars with high running costs and heavy work use. This calculator supports both: enter your kilometres to see the capped cents-per-kilometre deduction, or switch to logbook mode and enter your total expenses and business-use percentage to see the equivalent deduction under that method.
Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.
Frequently asked questions
What is the annual kilometre cap for the cents-per-kilometre method?
The ATO caps the kilometres you can claim under this method at a set number per car, per taxpayer, per income year — kilometres travelled above that cap can't be claimed under this method, though the logbook method has no such cap.
Do I need a logbook for the cents-per-kilometre method?
No, but you still need to be able to show how you worked out your business kilometres, such as diary records of trips. A full 12-week logbook is only required to substantiate the logbook method's business-use percentage.
Can I claim two cars under the cents-per-kilometre method?
Yes, the kilometre cap applies per car, so if you genuinely use more than one car for work you can apply the rate and cap separately to each car's work-related kilometres.
Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.