Motor Vehicle Claims

From 1 July 2015 the methods for claiming work related and business motor vehicle usage was changed.

Previously there were 4 methods to claim motor vehicle expenses however this was reduced to 2.

The changes can be summarised as follows:


Available to

30 June 2015

Available from

1 July 2015

Cents per Km to maximum of 5000 kms



Log book method



12% of cost of car method



One third of motor vehicle expenses



Cents per Kilometre Method

For the cents per kilometre method a reasonable estimate of work related or business kilometres can be calculated and multiplied by a set rate per kilometre to a maximum of 5,000 kilometres.

Up to 30 June 2015 the rates per kilometre have been based on the vehicle’s engine size. However from 1 July 2015 only the rate for the smallest engine size will be available. This rate is currently 65 cents per km.

Log Book Method

The log book method allows you to claim the business-use percentage of each car expense, based on the logbook records of your car’s usage. The business-use percentage is calculated by keeping a log of business kilometres for a consecutive 12 week period which must start during the financial year the claim is being made.

The requirements are:

  • Keep a logbook to enable you to calculate the business percentage
  • Maintain written evidence of your fuel and oil costs, or odometer readings on which your fuel usage estimate is based
  • Maintain written evidence for all your other expenses
  • Document the odometer at the end of each financial year
  • The log book must be kept each 5 years.

Please contact Personalised Tax Services if you would like some assistance with this