Motor Vehicle Deduction Calculator

Compares the cents-per-kilometre method against the logbook method, so a client can see which gives the bigger work-related car deduction.

FY 2025–26

FY 2026–27 (current)

Rates & assumptions used in this calculator

Cents per kilometre rate: FY2026-27 is 91c/km (base rate of 89c plus a temporary 2c one-off uplift for this year only — future years index from the 89c base). FY2025-26 is 88c/km.
5,000km cap: the cents-per-km method caps at 5,000 business kilometres per car per year, regardless of how many were actually driven — maximum claim is $4,550 (FY2026-27) or $4,400 (FY2025-26).
The cents-per-km rate is a single all-inclusive figure covering fuel, rego, insurance, servicing and depreciation — no separate receipts needed, but a reasonable record of business kilometres is still required.
Logbook method: deduction = business-use percentage (established via a continuous 12-week logbook, valid for 5 years unless circumstances change materially) × total actual running costs for the year, including depreciation.
Only individuals and sole traders can use the cents-per-km method — companies and trusts cannot.
This tool compares the two methods on the figures entered; it does not itself substantiate a logbook or verify business-use percentage.

Cents-per-km rate per ATO Legislative Instrument (2026-27: LI 2026/19; 2025-26: LI 2024/19), as at July 2026. Verify current-year rate at ato.gov.au before lodgement.

Cents per kilometre method

3,000 business km

Business kilometres travelled

Capped at 5,000km for this method regardless of the figure entered

Logbook method

40% business use · $12,000 running costs

Business-use percentage

From a valid continuous 12-week logbook

Total annual running costs

Fuel, rego, insurance, servicing, interest/lease and depreciation combined

Cents per kilometre

at 91c/km, capped at 5,000km

Logbook method

40% of $12,000 running costs

Maximize Your Motor Vehicle Deductions?

Calculate vehicle deductions using the logbook or cents-per-kilometer method. Our accountants ensure you're claiming maximum allowable deductions while maintaining ATO-compliant records.

Both methods compared Records validated ATO-compliant

This is a general estimate only, not tax advice. It does not verify that a logbook is valid, that business-use percentage is defensible, or that all running costs are deductible. Refer to a registered tax agent to confirm the correct method and figures for a specific vehicle and client.