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Calculation methods for claiming business motor vehicle expenses

Work out how to claim motor vehicle expenses, depending on your business structure and the type of vehicle.

Last updated 18 June 2019

Make sure you use the correct calculation method. Using the wrong method can lead to incorrect claims. Different rules apply depending on your business structure and the type of vehicle you are claiming for:

Sole trader or partnership

If you operate your business as a sole trader or partnership (where at least one partner is an individual), the method you can use depends on the type of vehicle:

  • When claiming for a car, you can use either the cents per kilometre method or the logbook method (you can use different methods for different cars and you can also change methods from year to year)
  • When claiming for an other vehicle, you must use the actual costs method.

If you are completing an outstanding tax return for 2014–15 or earlier, you may be able to use other methods that were available before 1 July 2015.

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Company or trust

You must use the actual costs method to work out motor vehicle expenses, regardless of the type of motor vehicle.

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