Back to Home

ATO Log Book Rules & Car Expense Claims 2026

Your clear guide to travel allowances, work-related car expenses, and using iDrive for simple ATO compliance.

1. Travel Allowance vs. Work-Related Car Expenses

Understanding this ATO distinction is crucial to claiming correctly.

Travel Allowance: A payment from your employer for expected costs when you travel overnight for work.

Work-Related Car Expenses: Costs you incur using your own car during your normal workday.

The iDrive app is designed to automate work-related car expenses.

2. The Two Methods for Claiming Car Expenses in 2026

Cents per KM

Simple
88ยข/km Rate for 2026
5,000 km Maximum claim

How It Works:

Multiply your work-related kilometres by the ATO rate of 88 cents per kilometre.

Best For:

  • Low-distance claims
  • Simple record-keeping
  • No receipts needed

iDrive's Role:

Track & estimate kilometres automatically

Recommended

Logbook Method

Accurate
Business % Claim proportion
12 weeks Logbook period

How It Works:

Claim the business-use percentage of your total vehicle running costs based on a 12-week logbook.

Best For:

  • Higher business use
  • Maximising claims
  • 5-year validity

iDrive's Role:

Fully ATO-compliant digital logbook

Automatic percentage calculations

Which Method Should You Choose?

Simple rule: If you drive more than 5,000 work kilometres annually or have high vehicle running costs, the Logbook Method will almost always give you a larger claim. For occasional work travel, Cents per KM is simpler.

3. Core ATO Logbook Rules

1

12-Week Period

Record a continuous 12-week period that represents your typical usage. This logbook remains valid for 5 years unless your usage pattern changes significantly.

2

Trip Tracking

Accurate recording of every journey's start and end. The ATO requires precise distance measurement for each trip to calculate business use percentage.

3

Trip Documentation

For each trip, record: date, distance travelled, and purpose/reason for the journey. Personal trips must also be recorded.

iDrive automates all these requirements: Our app tracks trips, calculates distances, and generates ATO-compliant reports with all required details.

4. Step-by-Step with iDrive

1

Enable Tracking

Turn on automatic trip detection in the iDrive app. Works in background with minimal battery use.

2

Classify Trips

Review auto-detected trips and tag them as Business or Personal with one tap.

3

Generate Report

Export ATO-compliant logbook reports with all required details: dates, distances, purposes.

4

Save for 5 Years

Store your digital logbook securely in the app for the ATO's required 5-year record keeping.

Pro Tip: Start your 12-week logbook period at the beginning of a financial quarter for easier tracking and renewal.

5. FAQ

Is a digital logbook accepted?

Yes. iDrive meets ATO requirements for electronic record keeping.

What if tracking fails?

You can manually add trips with all required details. iDrive also has trip recovery features.

Can I switch methods later?

Yes, but you must maintain consistent records. iDrive tracks data suitable for both methods.

Ready to Simplify Your Driving Logs?

Join thousands of Australians who trust iDrive for accurate, automatic trip tracking.

Download iDrive Today