Motor Vehicle Expenses
Motor vehicle expenses may be claimed for the use in your business, or use as an employee for work
purposes, you cannot make a claim for use that is private in nature.
When claiming car expenses as a deduction within your tax there are a couple of methods that you
1. Cents per Kilometer Method
2. Logbook Method
Cents per Kilometer Method
Under this method, you can claim up to a maximum of 5,000kms but you must be able to show how
you came up with the amount of kilometers you are claiming (e.g. diary records, electronic calendars).
If the use of your motor vehicle is undertaken as an employee, you will require a letter from your
employer, with a contact name and phone number, confirming that you are required to use your
vehicle to carry out employment duties.
Under this method, you need to complete a logbook (this can be electronic or manual) over a
continuous 12-week period. The logbook must show:
• What dates the 12-week period covers
• The odometer reading at the beginning of the logbook period
• The total number of kilometers the vehicle traveled through the logbook period
• The number of kilometers traveled for each journey
• Whether the journey was for business or private purposes
• The odometer readings at the start and end of each subsequent financial year that the logbook is valid
• The business-use percentage for the logbook period (this is worked out by dividing the kilometers you have traveled for work/business purposes by the total number of kilometers traveled and multiplying by 100)
• The make, model, and registration number of the vehicle
Once you have completed the logbook, it remains valid for 5 years. If circumstances change
significantly (e.g. the amount you use the vehicle for work increases/decreases or your employment
changes), you may be required to complete a new logbook, even if it is within the 5 year validation.
You may be able to claim a tax deduction for the expenses associated with your vehicle. You must
keep a record of these expenses, including invoices and finance documents on any vehicle purchases.
These expenses can include:
• Petrol & Oil
• Repairs & Maintenance (including servicing)
• Interest on a loan for the vehicle
• Lease payments
The total of your actual expenses is then multiplied by the business-use percentage to give you the
amount of claimable expenses.