Calculating and Claiming Trade Vehicle Running Costs

For many tradies, your ute or van is your most expensive asset. Understanding how to correctly claim vehicle running costs is essential for reducing your taxable income at the end of the year.

Choosing the Right Method

The ATO offers two primary ways to claim expenses. Picking the right one depends on your annual travel and how well you keep your paperwork.

• The cents-per-kilometre method (up to 5,000km)
• The logbook method (based on actual business usage percentage)

1. Purchase a logbook from a stationer or use a digital app
2. Record every business trip for 12 consecutive weeks
3. Calculate your business percentage based on your total travel
4. Use this percentage against all fuel, insurance, and repair receipts