Work out your car's business-use percentage from your logbook, then see whether the logbook method or cents per kilometre gives you the bigger deduction.
Cents per km: 88c for 2024–25 and 2025–26, 91c for 2026–27 · last reviewed October 2026
⚠ This is not tax advice. The information on this page is general in nature and doesn't take your personal circumstances into account. It's a plain-English summary of ATO guidance as at October 2026, and rates and rules change each income year. Before you rely on it, check the linked ATO page or speak to a registered tax agent. Lodgya is a record-keeping tool and is not a registered tax agent.
A valid logbook covers at least 12 continuous weeks that are broadly representative of how you use the car. For every work trip it records the reason, the destination, the odometer at the start and end, and the kilometres travelled, written up at the end of the trip or as soon as possible afterwards. It also records the odometer at the start and end of the whole logbook period.
ATO: Logbook method
Divide the work-related kilometres in your logbook period by the total kilometres travelled in that period, then multiply by 100. Your deduction under the logbook method is that percentage of your total car expenses for the year.
ATO: Logbook method
A logbook is valid for 5 years. In each later year, keep odometer readings for the start and end of the year and your work kilometres based on the logbook percentage. If your circumstances change, such as a new job or moving house, so the logbook no longer represents your work use, you need a new 12-week logbook. Keep the logbook and odometer records for 5 years after the last year you rely on them.
ATO: Logbook method
Cents per kilometre is simpler: 88c per km for 2024–25 and 2025–26, or 91c for 2026–27, capped at 5,000 work km per car. It covers all car costs and needs no receipts, just a record of how you worked out your kilometres. The logbook method suits people who drive a lot for work or have high car costs, but it needs a valid logbook and receipts. The calculator above compares both.
The Lodgya Vehicle logbook records trips as you go, tracks your 12-week period and business-use %, and feeds car expenses into your tax records.
General information only, not tax advice. See our full note and disclaimer.