Work-Related Car Expenses: 88 Cents vs Logbook (2025-26)
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Primary tax-year context: 2025-26
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General information only. Speak with a registered tax agent for advice.
ATO guidance says for 2025-26 the cents-per-kilometre method uses 88 cents per km, capped at 5,000 work-related kilometres per car. The alternative is the logbook method with actual expenses and substantiation.
Method selection
- Cents per km: simpler, capped, record of how kilometres were worked out
- Logbook: potentially larger claim, but requires stronger records
Sources (verified)
Next step
- Estimate net effect in the Tax Return Calculator
- Check taxable income changes in the Income Tax Calculator