A Tradie's Guide to Tracking and Claiming Business Vehicle Expenses

Why accurate vehicle records matter

For tradies, the ute or van is often the most important tool in the shed. Because it's essential for getting to jobs, the ATO allows you to claim expenses, but only if you have the right records. Guessing your travel percentages is a fast track to an audit.

Choosing the right method

There are two main ways to claim vehicle costs. Choosing the best one depends on how many kilometers you travel for work.

• Cents per kilometer: Best if you do less than 5,000 work-related kilometers a year.
• Logbook method: Best for high-use vehicles where you need to track actual fuel, repairs, and insurance costs.

1. Start your logbook at the beginning of the financial year.
2. Keep it for a continuous 12-week period to establish your business-use percentage.
3. Record every work trip including the date, odometer readings, and the specific reason for the trip.
4. Keep receipts for all fuel, registration, insurance, and mechanical services during the period.