Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
parueparu(Newbie)Newbie
3 July 2024

Hi,


I am just not sure what to follow.

Say for example the total Kms showing in my logbook for 12 weeks is 8,150Kms and business use for that is 3,600 Kms. In addition my odometer is showing 24,500.


I want to know if I am doing it right.

If I use the logbook method that would be 3,600/8,150 = 44.17% and I will use this business percentage to multiply to my total car costs. Am I right?


Now, if I use the Cents per Km Method, should I

3,600/8,150 = 44.17% x 24,500 (odometer) = 10,821.65

Since it is higher than the max limit of 5,000 so, I'll use the 5,000 to multipy to .85 cents?



1,065 views
6 replies
1,065 views
6 replies

Most helpful response

All replies

knaresbro(Devotee)Devotee
3 July 2024

Your odometer reading is irrelevant, @parueparu .


Your logbook method example seems right, i.e. the work related proportion of total expenses.


In the cents per km method, allowed because you're claiming less than 5,000 km, you would be claiming 3,600 km at 85 cents.

  • Avatar of man with short black hair
Liked by parueparu
parueparu(Newbie)Newbie
4 July 2024

Thanks @knaresbro


RE: Cents per Km -

That's also what I was thinking however, my senior told me that since total km showing is 24,500 kms (from odometer) so, I need to get the business portion of that because the logbook is just for a 12 week period so, what I did is:


3,600 km business use /8,150 logbook km = 44.17% x 24,500 km (odometer) = 10,821.65

and since it is above the limit of 5,000 so,


5,000 km x 0.85 cents = 4,250


Most helpful reply

Taxduck(Taxicorn)Taxicorn
3 July 2024

You're right, using logbook method 44.17% of expenses are tax deductible.

Your cents/km method is incorrect.

Under the cents/km method you claim the number of business or work related kilometres for the year (up to a maximum of 5000km per car owned and used) by the ATO rate (85 cents per km)

Link below explains.

Expenses for a car you own or lease | Australian Taxation Office (ato.gov.au)

  • Avatar of man with short black hair
Liked by parueparu
parueparu(Newbie)Newbie
4 July 2024

Thanks @Taxduck


RE: Cents per Km -

That's also what I was thinking however, my senior told me that since total km showing is 24,500 kms (from odometer) so, I need to get the business portion of that because the logbook is just for a 12 week period so, what I did is:


3,600 km business use /8,150 logbook km = 44.17% x 24,500 km (odometer) = 10,821.65

and since it is above the limit of 5,000 so,


5,000 km x 0.85 cents = 4,250

Taxduck(Taxicorn)Taxicorn
4 July 2024

It's a good idea to compare what the deduction would be on both methods, logbook and cents/km, then choose the one that gives you the best deduction.

Featured articles

Finding your TFN

6 Feb 2026 · 4 min read time

Linking your myGov account to the ATO

24 Aug 2025 · 3 min read time

Spouse details and your tax return

15 Apr 2026 · 3 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3260 likes

  2. Taxduck

    (Taxicorn)

    2057 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    528 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10396contributions

  2. Taxduck

    (Taxicorn)

    4752contributions

  3. PayrollDeanne

    (Taxicorn)

    2056contributions

  4. YellowPotato

    (Taxicorn)

    1351contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Logbook or Odometer | ATO Community