The simple method caps out fast — 5,000 kilometres and that's it, no matter how much more you drove. If your business kilometres go beyond that, the logbook method has no cap at all, just more record-keeping. Here's what each actually gets you.
The simple option
One flat rate covers fuel, insurance, registration, servicing and depreciation. No receipts needed — just a record of how you calculated your business kilometres.
The no-cap option
Claim your business-use percentage of actual running costs, based on a 12-week logbook that stays valid for five years if your driving pattern doesn't change.
Business km ÷ total km, from your 12-week log.
Fuel, insurance, rego, servicing, tyres, loan interest.
Subject to the car depreciation cost limit — check the current figure with your tax agent.
Apps that log trips automatically via GPS make the logbook method far less painful than a notebook on the passenger seat — worth it if your business kilometres are anywhere near the 5,000km cap.
See a logbook app that automates this →