Your ute or van is probably your biggest tax deduction. Cents per kilometre or logbook method? The difference could be $3,000+ on your tax return.
Method 1: Cents Per Kilometre
Claim 85¢ per km up to 5,000 km/year. Max deduction: $4,250. Simple, no logbook needed. Good for tradies who drive less than 5,000 work km/year.
Method 2: Logbook Method (Higher)
Keep a 12-week logbook (valid 5 years). Claim actual % of business use against ALL vehicle expenses.
Example: Toyota HiLux, 80% business use\nFuel $6,000 → claim $4,800\nRego + CTP $1,200 → claim $960\nInsurance $1,800 → claim $1,440\nServicing $1,500 → claim $1,200\nDepreciation $8,000 → claim $6,400\nTOTAL DEDUCTION: $18,800+
What Counts as Business Use?
- Driving to/from suppliers (Bunnings, Reece)
- Travel between job sites
- Client meetings & quotes
- Picking up materials
🚗 Home-to-Work Rule
The trip from home to your first job is generally NOT deductible. But if you carry bulky tools that cannot be secured on site, you may be able to claim it.