ATO Work-Related Car Expenses 2025-26
For 2025-26, Australian car expense claims usually start by choosing between cents-per-kilometre and logbook methods.
Short answer
For 2025-26, ATO work-related car expense claims usually come down to choosing cents-per-kilometre or logbook method, then keeping records that match that method.
At a glance
- Cents-per-kilometre is simpler and capped.
- Logbook uses actual costs and business-use percentage.
- Ordinary commuting is usually excluded.
Method choice
Use cents-per-kilometre when you want a quick capped claim. Use logbook when actual costs and business-use percentage may support a better result and you can keep stronger records.
Recordkeeping
The stronger claim is the one where the kilometres, receipts, and method choice tell the same story. Decide the method before tax time so the records do not need to be reconstructed later.
Official references
Common questions
Which ATO car expense method should I use in 2025-26?
Use cents-per-kilometre for a simpler capped claim, or logbook when actual costs and business-use percentage are worth the extra records.
Continue with tools
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