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Tax compliance

A Tradie's Guide to Tracking Business Mileage for Tax

11 October 2026 · 5 min read · By Heaney Accounting

Why accurate mileage tracking matters

If you use your personal or work vehicle for business, you need proof of your travel to claim deductions. Without a solid record, the ATO may disallow your fuel, insurance, and maintenance claims.

The two main methods for claims

  • Cents-per-km method: Best for lower annual mileage, capped at 5,000km.
  • Logbook method: Necessary for larger claims, requires a continuous 12-week logbook.
  • Actual cost method: Requires detailed records of every fuel receipt and repair invoice.
  1. Start your logbook at the beginning of the financial year.
  2. Record every trip including the date, odometer reading, and specific purpose.
  3. Keep all relevant receipts for vehicle maintenance and fuel in a digital folder.

Pro Tip: Always remember that travel between your home and your main place of work is generally considered private and cannot be claimed as a business expense.

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