How to Claim Car Expenses on myTax
Car expenses are claimed in the 'Work-related car expenses' section of your individual tax return on myTax. Sole traders use the business schedule (Schedule B). The mechanics are straightforward once you know which section maps to your method.
Employees: work-related car expenses (D1)
On myTax, the work-related car expenses section asks: which method are you using (cents-per-km or logbook)? Then it walks through the inputs for that method. For cents-per-km, you enter the business kilometres (capped at 5,000). For logbook, you enter the business-use percentage and total vehicle expenses.
myTax does the multiplication automatically. You do not file the logbook itself; you keep it on hand in case the ATO requests it.
Sole traders: Schedule B
If you are running a sole-trader business and your car is used for that business (not employment), the deduction is on the business schedule rather than work-related expenses. Same two methods, same calculation, different schedule.
Records the ATO can request
Cents-per-km: a record of business kilometres for the year (date, destination, purpose, km). The 5,000 km cap is enforced automatically; no receipts required.
Logbook: the 12-week logbook itself, all vehicle-expense receipts for the financial year, and depreciation calculations if applicable. The ATO can ask for any of these for up to five years after lodgement.
FAQ
Do I attach the logbook to my return?
No. Keep it. The ATO does not collect logbooks at lodgement; they are produced on request if your return is reviewed.
What if I worked across two states?
Australia has no state-level mileage tax, so cross-state work doesn't change the calculation. The cents-per-km rate and 5,000 km cap apply uniformly across all states and territories.
Track your Australia business mileage.
Free for 40 auto trips a month. ATO rates handled with the right tier and cap.
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