This is general information only. A tax deduction generally needs to be paid by you, not reimbursed, directly connected to earning your income, and supported by records. Check the ATO transport and travel expenses guidance or ask a registered tax agent before lodging.
Which trips actually count
The deciding factor is the purpose of each trip, not the vehicle you drive. A ute plastered in signage does not make the drive to your first job claimable, and an ordinary sedan does not stop a genuine between-site trip from counting.
Driving from home to a regular place of work is generally treated as private, because it puts you in a position to start earning rather than forming part of the work itself. Once your day has started, trips between sites, to suppliers, to a client meeting or to pick up materials generally have the work connection the rules look for.
Tradies often work across several sites in a week, which makes the pattern of trips worth recording as you go. Reconstructing a year of driving in July is where most claims come unstuck.
Where it gets less obvious
A few situations sit outside the ordinary pattern and are worth raising rather than guessing at. Travelling to a site that changes constantly, being called back after hours, and carrying bulky equipment that cannot be left securely on site can each be treated differently from a normal commute.
The bulky equipment position in particular is narrower than it is often assumed to be, and it depends on the nature of the gear, whether secure storage was genuinely available, and what your employer required. It is worth a conversation before you rely on it.
The two ways to claim car expenses
Individuals claiming for a car generally choose between a kilometre-based method and a logbook method. The kilometre method uses a set rate for your work kilometres up to a cap, needs no receipts for running costs, and suits lower work usage.
The logbook method works out the business-use percentage of your actual running costs, including fuel, servicing, tyres, insurance, registration and decline in value. It requires more record keeping and generally produces a larger claim where work use is high, which is common for tradies.
A logbook is kept for a continuous representative period and then holds for several years provided your circumstances stay similar. Starting one now protects next year even if this year is already settled.
Utes, vans and vehicles that are not cars
Some work vehicles fall outside the definition of a car used by the methods above, typically because of their carrying capacity or how many passengers they are designed to take. Many one tonne utes and larger vans sit in this group.
Where that applies, the claim is worked out on actual work-related running costs rather than by the kilometre method, and the records you need change accordingly. Checking which category your vehicle falls into before you start recording is time well spent.
Records to keep
- A logbook covering a continuous representative period, if you use that method.
- Odometer readings at the start and end of the income year.
- Fuel, servicing, tyre, repair and insurance receipts.
- Registration and finance or lease documents.
- Purchase details for the vehicle, including the date and price.
- Notes on trips between sites, including the sites and the reason.
- Any employer allowance or reimbursement you received.
Common mistakes we see
- Claiming the daily commute because the vehicle carries tools.
- Estimating work kilometres at year end with nothing to support the figure.
- Using the kilometre method for a vehicle that is not a car.
- Claiming the full running cost of a vehicle that is also the family car.
- Keeping a logbook for a fortnight and treating it as representative of a whole year.
Common questions
Can a tradie claim the drive from home to work?
Usually not. Ordinary home-to-work travel is treated as private, even in a signwritten work vehicle. Limited exceptions exist, including some situations involving bulky equipment or shifting work locations, and these depend closely on your circumstances.
Can I claim a ute I also use privately?
You can generally claim the work-use portion. The private share stays out of the claim, which is why an accurate work-use percentage backed by a logbook matters.
Do I need a logbook if I use the kilometre method?
A formal logbook is not required for that method, but you still need to be able to show how you worked out your work kilometres. A diary or job record is usually the simplest evidence.
Does a car allowance from my employer change things?
An allowance is generally income and is shown in your return. It does not automatically equal your deduction, so the actual work-related expense still needs to be worked out and substantiated.
Not sure which trips you can claim?
Vehicle claims are where tradie returns most often go wrong in both directions. Talk it through before you lodge and claim what you are genuinely entitled to.
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