Skip to main content

Guide · Last reviewed 27 Oct 2026

ATO logbook method: how it works and when it beats cents per km

Short answer
With the logbook method you keep a logbook for at least 12 continuous weeks that is representative of the year, work out your business-use percentage, and claim that share of your actual car costs. A logbook stays valid for 5 years unless your use changes.

Source: ATO, logbook method · checked 27 Oct 2026

How it works

Example: a 12-week logbook, filled week by week

  1. Pick 12 weeks

    A continuous period that looks like a normal stretch of your year.

  2. Record each business trip

    Date, kilometres, odometer readings and a reason. Odometer readings at the start and end of the period too.

  3. Work out your business-use share

    Business kilometres divided by all kilometres in the period.

  4. Add up your car costs

    For the full year, with receipts.

  5. Claim the share

    Your costs multiplied by the business-use share.

Compare with your numbers

Cents per km or logbook? The starting numbers are an example. With cents per km you can claim at most 5,000 km per car; if you drive more, or your costs are high, the logbook method may give a bigger deduction.

Cents per km, 2026–27 (91 c)
A$3,822.00
Logbook method
A$6,076.00

Logbook is higher by A$2,254.00

Estimate only. At 62% business use and 4,200 km, the logbook method gives more once yearly costs pass about A$6,165. The logbook method needs records of your costs. The 5,000 km cap applies to cents per km only.

Source: ATO, logbook method · ATO, cents per kilometre method · FY 2026–27 · checked 27 Oct 2026

What counts as a cost

Running costs such as fuel, registration, insurance, servicing, repairs and decline in value of the car. Keep the receipts and work out the year's total. The ATO page lists what you can include; check it for your car.

Common questions

Source: ATO, logbook method · checked 27 Oct 2026

Limits

Kestly does not give tax advice. These figures are estimates. Check your situation with the ATO or a registered tax agent.

Read next

Keep your 12-week logbook in your pocket

30-day free trial. No card needed.

Join the waitlist