How to Claim Car Expenses Using the Logbook Method in 2025

If you use your car for work, the ATO might owe you some money but only if you do it right. The logbook method is one of the best ways to claim vehicle expenses and boost your tax refund. It gives you access to more deductions than the cents-per-kilometre method, but it requires a little effort upfront.

Here’s how it works, what records you need, and why it could be totally worth it.

What Is the Logbook Method?

The logbook method helps you calculate how much of your car use is for work, so you can claim that portion of your vehicle expenses at tax time.

You track every trip, work and personal, for 12 consecutive weeks. From that, you calculate your business use percentage (e.g., 60% work-related). That percentage is then applied to your total car expenses across the year.

Logbook vs Cents-per-Kilometre: Which One’s Better?

If you drive a lot for work, the logbook method is almost always better. Here's why:

Method	What You Can Claim	Best For
Logbook	% of all running costs (fuel, rego, insurance, servicing, depreciation, etc.)	Regular, high work-related car use
Cents/km	Flat rate (85 cents/km, max 5,000 km)	Infrequent or short work-related driving

💡 Using a logbook means you can claim more than just fuel, including expenses like rego and insurance.

Keeping a Valid Logbook

Your logbook must cover 12 continuous weeks and reflect everyday use. It must include:

1. Start/end dates and odometer readings

2. Make, model, and registration of the vehicle

3. Odometer readings at the end of each income year

4. Detailed records per trip:

   • Dates

   • Purpose

   • Start/end odometer

   • Kilometres entered

How to Calculate Your Business Use %

Once your 12 weeks are logged, use this formula:

(Business kilometres ÷ Total kilometres) × 100 = Business use percentage

Example: You drove 4,000 km in 12 weeks, of which 2,400 were for work. 

That’s: (2,400 ÷ 4,000) × 100 = 60% business use

That 60% will apply to all your eligible car expenses for the entire financial year.

What Car Expenses Can You Claim?

If you use the logbook method, you can claim a percentage of:

• Fuel and oil

• Repairs and servicing

• Registration

• Insurance

• Loan interest (if financed)

• Car depreciation

🚫 You can’t claim:

• The purchase price of the car

• Fines (parking, speeding, etc.)

• Private travel costs

And remember: you need to keep receipts or evidence for all the above expenses.

Final Tip: Don’t Guess Your Claims

The ATO expects your claims to be accurate and backed by evidence. Estimating or making up figures could lead to penalties or audits.

If in doubt, or if you're unsure which method is better for you, our team at Precent can guide you and even review your logbook to make sure it’s ATO-proof.

Ready to claim your car expenses the smart way? Let’s boost your refund. Book a free consultation today.