Maximising Tax Deductions for Your Trade Vehicle
20 July 2026 · 5 min read · By Heaney Accounting
Keeping Accurate Vehicle Records
For most tradies, your ute or van is the most important tool in your arsenal. Because it is used for business travel, you can claim a significant portion of the costs associated with running it, but only if your records are watertight.
Crucial Warning: The ATO requires strict substantiation. A simple estimate is never enough to pass an audit if you are claiming more than the set cents-per-kilometre limit.
- Record your odometer reading at the start of the financial year.
- Keep a log for a continuous 12-week period to establish your business usage percentage.
- Log every trip, including the destination, the reason for the travel, and the distance covered.
- Store your fuel receipts, insurance policies, and service invoices in a digital folder.
By following these steps, you can calculate the business use percentage of your vehicle. This percentage is then applied to all your vehicle expenses, such as registration, insurance, repairs, and fuel.
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