Twelve weeks of good records can set your work use percentage for up to five years. Here's how to get it right the first time.
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By the Nomo team · Last reviewed 24 September 2026
The cents per km method stops at 5,000 work kilometres per car. The logbook method has no cap. Instead, you work out what share of your driving is for work, then claim that share of what the car actually costs you.
You drive 20,000 km a year and 8,000 of those are for work, so your work use is 40%. If the car costs $11,000 a year to run, including its decline in value, 40% is $4,400. Cents per km would give you 5,000 km at 91c, which is $4,550. Close, so it comes down to your costs and your kilometres.
Run your own numbers with the cents per km calculator. If you're well past 5,000 work kilometres or your car is expensive to run, the logbook usually wins.
The purpose matters more than people think. "Work" isn't a purpose. "Site visit, 14 Smith St" or "Client meeting" is.
A logbook can be used for up to five years, as long as it still reflects how you use the car. You can start a new one any time, and you should if your driving changes: a new job, a new route, a new routine.
With a logbook you claim your work use percentage of the car's actual running costs, for example:
Keep the receipts for all of them. Unlike cents per km, the logbook method needs written evidence of the costs.
Yes. The ATO accepts electronic logbooks, as long as the records are easy to access and in English, or can be converted into English. Your options are a paper logbook in the glovebox, the free myDeductions tool in the ATO app, or a dedicated app that records trips for you. For paper or a spreadsheet, grab our free car logbook template.
Nomo records every work trip automatically with the date, distance and purpose, and you swipe each one to work or personal right after the drive. Nomo is an Australian tax deduction and mileage/work kilometre tracking app for PAYG employees and sole traders.
See everything the Nomo logbook tracker does, from odometer readings to the 12 week report.
A purpose on every trip, right after the drive.
Every trip with the date and kilometres.
The logbook method is only for cars. A vehicle built to carry one tonne or more, or nine or more passengers, isn't a car for tax purposes. For those you claim the actual work-related costs, with receipts and a record of how much you use it for work. The mileage tracker for tradies page covers the ute question.
Sole traders can use the logbook method for business use of a car too, and the same 12 week rules apply. See the ATO's logbook method for sole traders.
Anyone who drives a lot for work or their business, or whose car is expensive to run.
For a continuous period of at least 12 weeks that reflects how you usually drive.
Up to five years, as long as your driving pattern doesn't change much. You can start a new one any time.
The date, start and end odometer readings, kilometres and purpose of each work trip, plus odometer readings for the start and end of the 12 weeks.
Yes. The ATO accepts electronic logbooks if the records are accessible and in English, or can be converted into English.
Yes, for your car expenses. Fuel and oil can be a reasonable estimate based on your odometer readings.
It depends on how far you drive for work and what your car costs to run. Past 5,000 work kilometres, cents per km stops counting.
Not if it's built to carry one tonne or more. You claim the actual work-related costs instead.
Yes. Nomo records your trips with odometer readings, works out your work use percentage and produces a 12 week logbook report.
Twelve weeks, sorted.
Every work trip recorded as you drive. 14 days free, no card needed.
Start 14-day free trialBy the Nomo team · Last reviewed 24 September 2026. We check these pages against current ATO guidance and update them when the rules change.
General information only, not tax advice. Rules change and everyone’s situation is different, so check ato.gov.au or talk to a registered tax agent about your situation. Nomo is a record keeping app, not a registered tax agent.