17/07/2026
The ATO has sent letters to more than 500,000 taxpayers about work-related car expense claims. Could your claim be reviewed?
If you're claiming work-related car expenses this tax season, make sure you can support your claim with the right records.
Cents per kilometre method (2025–26)
Rate: 88 cents per kilometre
✓ Claim up to 5,000 work-related kilometres per car (maximum deduction of $4,400).
✓ You don't need a logbook, but you must be able to show how you calculated your work-related kilometres.
You can keep supporting records using:
myDeductions tool in the ATO app
Diary or calendar entries
Work rosters or appointment records
Trip records or odometer readings
The 88 cents per kilometre rate already includes:
Fuel and oil
Registration
Insurance
Servicing and repairs
Tyres
Depreciation
These costs cannot be claimed separately under the cents per kilometre method.
You can still claim separately (where eligible):
✓ Parking fees
✓ Road tolls related to deductible work travel
Logbook method
✓ Keep a valid logbook for a continuous 12-week period that reflects your normal travel pattern.
✓ A logbook can generally be used for up to 5 years if your work-related travel pattern does not significantly change.
✓ Record odometer readings at the start and end of each income year.
✓ Keep evidence of car expenses such as fuel, servicing, insurance, registration and repairs.
The myDeductions tool in the ATO app can also help you record work-related expenses, vehicle trips, receipts and other tax records throughout the year.
Common mistakes the ATO is targeting
✗ Claiming normal home-to-work travel.
✗ Claiming the maximum 5,000 km without a reasonable basis.
✗ Not keeping records to support your claim.
The ATO is paying closer attention to work-related car expense claims this year. Whether or not you received a letter, make sure your claim is accurate and supported by proper records.
Need help reviewing your deductions before lodging your tax return?
Doyen Chartered Accountants
Reliable, affordable tax advice for individuals and small businesses.