If you use your car for work, you can claim it, but the ATO gives you two methods and they produce very different results. Picking the right one can be worth hundreds or thousands of dollars.
The cents per kilometre method
This is the simple one. You claim a set rate for each work kilometre you travel, up to a cap of 5,000 business kilometres a year. You don't need receipts for your running costs, just a reasonable way to show how you worked out the distance. It suits people with modest work travel who don't want the paperwork.
The logbook method
Here you keep a logbook for a continuous 12-week period to work out the business-use percentage of your car. You then apply that percentage to your actual running costs, including fuel, insurance, registration, servicing, and depreciation. It takes more effort but usually gives a bigger claim if you drive a lot for work or your car is expensive to run.
Which one wins
Low work travel, cents per kilometre is easier and often enough. High work travel or a costly vehicle, the logbook method typically claims more. The only way to know for sure is to compare both for your situation.
What counts as work travel
Driving between job sites or to see clients counts. Your normal commute from home to your regular workplace generally doesn't. Getting that distinction right keeps your claim clean.
The bottom line
Both methods are legitimate, they just suit different people. If you drive a lot for work and you've only ever used cents per kilometre, it's worth checking whether a logbook would put more back in your pocket.
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