Work out the car expenses you can actually claim, without the ATO pushing back.
For sole traders and subbies who drive to site. Uses the ATO cents-per-kilometre method — 88c a km, capped at 5,000 business km a year.
If this is your first claim this financial year, leave this as 0.
This uses the ATO's cents-per-kilometre method for cars. It's an estimate of your business deduction for tax — not cash paid to you by the ATO. If you do big kilometres, a logbook usually beats it.
What counts as business kilometres?
- Travelling between jobs, sites, customers, or suppliers
- Going to the supplier or tip for a specific job
- Visiting a client to quote or inspect
Normal home-to-a-regular-workplace travel does not count.
What the law actually says
- •The cents-per-kilometre method lets you claim 88c per business kilometre for the current year, up to 5,000 km per car — no receipts needed, but you must be able to show how you worked out the kilometres.
- •It applies to cars (including car-type utes). A one-tonne-plus ute or van isn't a 'car' — you claim the business portion of actual running costs instead.
- •Estimate of a tax deduction, not cash paid to you. Guidance only — confirm with a registered tax agent.