The ATO has sent emails to more than 500,000 taxpayers who previously claimed car expenses, warning that motor vehicle deductions will be checked more closely this tax time.
For the 2025–26 tax year, taxpayers using the cents-per-kilometre method can claim 88 cents per work-related kilometre, up to 5,000 km. The ATO has reminded taxpayers that normal home-to-work travel is generally not claimable, and all claims must be supported by accurate records.
If you use your car for work, make sure your deduction is correct before lodging your tax return. Incorrect or excessive claims may delay your refund or result in an ATO review.
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Our registered tax agent can review your deductions, ensure your claims are accurate, and help you maximise your legitimate refund.
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If you’re unsure whether your car expenses are claimable, complete our online form and let our experienced tax professionals help you lodge your return with confidence.
