TAX & FINANCE

Maximizing ATO Mileage Log Deductions: Standard vs Logbook

Published on June 19, 2026 • Written by Sarah Jenkins (Product & Tax Compliance)

For rideshare drivers, sole traders, and employees using personal vehicles for business travel, claiming vehicle expenses is one of the most significant opportunities to lower tax liability in Australia. However, choosing the wrong claim method or failing to keep proper records can result in thousands of dollars of lost deductions or, worse, an audit by the Australian Taxation Office (ATO). In this guide, we break down the two primary claim methods and show how keeping a compliant digital logbook is the key to maximizing your return.

1. The Cents-per-Kilometer Method (Standard Rate)

The Cents-per-Kilometer method is the simplest way to claim vehicle expenses. You do not need to keep receipts for fuel, maintenance, or registration. Instead, you claim a flat rate per kilometer traveled for business, up to a maximum limit.

• Rate: 85 cents per kilometer (rate applicable for the 2023-24 and 2024-25 tax years).
• Limit: Capped at a maximum of 5,000 business kilometers per vehicle, per year. This means the absolute maximum claim is $4,250.
• Record Keeping: While you do not need a formal logbook, you must be able to demonstrate to the ATO how you calculated your business kilometers (such as diary records, shift logs, or digital travel reports).

2. The Logbook Method (Actual Expenses)

The Logbook method is based on the actual costs of operating your vehicle, scaled by the percentage of business usage. For high-mileage drivers, such as rideshare operators or sales representatives, this method almost always yields a substantially higher deduction.

• Claimable Costs: Fuel, oil, repairs, servicing, insurance, registration, depreciation, and interest on vehicle loans.
• How it works: You record all travel for a continuous 12-week period to establish your "business use percentage." For example, if you drive 10,000 km during the logbook period and 8,000 km of that was for business, your business use percentage is 80%. You can then claim 80% of all vehicle running costs for the entire year.
• Validity: Once established, your logbook is valid for up to five years, provided your driving patterns do not change significantly.

3. Quick Comparison: Which is Best for You?

Depending on your driving habits, one method will clearly outshine the other in terms of tax savings. The table below outlines the core differences:

Feature	Cents-per-Kilometer	Logbook Method
Max. Business Distance	5,000 km per vehicle	Unlimited
Max. Deduction Value	$4,250	Unlimited (based on actual costs)
Receipts Required?	No	Yes (fuel, servicing, registration, etc.)
Odometer Records?	No (must show calculation)	Yes (continuous 12-week record)
Best Suited For...	Occasional business drivers	Rideshare, delivery & high-mileage users

4. How Velo Automates and Secures Your Claims

Keeping a manual logbook with pen and paper is tedious, error-prone, and easily lost. Velo eliminates this friction by automating GPS tracking and saving mileage logs directly onto your iOS device. Key features designed for ATO compliance include:

• One-Tap Logging: Start and stop tracking with a single tap, or let Velo's Live Activities manage updates directly from your Lock Screen.
• On-Device Calculations: Input your tax rate and watch Velo calculate your estimated tax return in real time as you drive.
• Seamless Exports: Generate ATO-compliant CSV and PDF reports containing timestamps, start/end locations, and exact distances to send straight to your accountant.