How do you track your business kilometres so you can claim the maximum car expenses at tax time?
You log every trip with start and end odometer readings, purpose, and date. The ATO lets you claim either 85 cents per km or actual costs, tracking makes both methods easy and audit-proof.
You know that feeling when you’re driving all week for work…
Back and forth to jobs. Picking up materials. Visiting clients.
Then tax time rolls around and you think:
“Surely I can claim some of this?”
But without proper records, you’re either guessing… or missing out.
And that’s money left on the table.
That’s where getting your kilometre tracking Australia setup right makes a massive difference.
It’s not complicated. But it does need to be done properly.
Why Most Sole Traders Undercook Their Car Claims
Let’s be real.
Most people either:
- Don’t track anything
- Try to estimate later
- Or only track some trips
And that usually means one thing…
You’re claiming less than you should.
Or worse, claiming something you can’t prove.
Neither is ideal.
A proper car expense claim sole trader setup protects you both ways:
- You claim what you’re entitled to
- You’ve got records if anyone asks
No stress. No guessing.
The Two Ways to Claim Car Expenses in Australia
The ATO gives you two main options.
Option 1: Cents Per Kilometre Method
This is the most common.
You claim a set rate per km.
Right now, it’s:
- 85 cents per kilometre (check for updates each year)
You can claim up to 5,000 business kilometres per car, per year using this method.
What you need:
- Total business kilometres
- Basic record of how you worked it out
That’s why kilometre tracking Australia matters, even for this “simple” method.
Option 2: Logbook Method (Actual Costs)
This is more detailed.
You track:
- All car expenses (fuel, rego, insurance, servicing, etc.)
- Business vs personal use percentage
Then claim the business portion.
What you need:
- A logbook over a representative period
- Ongoing expense records
This method can give you a bigger claim… but only if your records are solid.
What You Actually Need to Record (Keep It Simple)
No need to overthink it.
For each trip, you should log:
- Date
- Start location
- End location
- Purpose of the trip
- Start odometer reading
- End odometer reading
That’s it.
If you’ve got those, you’re in good shape.
A clean kilometre tracking Australia setup means you’re not scrambling later.
What Counts as a Business Trip?
This part trips people up.
Usually Claimable
- Driving to a client’s location
- Picking up tools or materials
- Traveling between job sites
- Business errands
Usually Not Claimable
- Home to your regular workplace
- Personal trips
- Mixed trips without proper split
When in doubt, ask your accountant.
But the key is clarity.
If you can explain the purpose, you’re on the right track.
Real Benefits of Tracking Your Kilometres Properly
This isn’t just about ticking a box.
It’s about real money and less stress.
You Maximise Your Claim
Every kilometre counts.
If you’re not tracking, you’re guessing, and usually under-claiming.
You Stay ATO-Ready
If you ever get asked, you’ve got clean records.
No panic. No digging through old notes.
You Save Time at Tax Time
Everything’s already there.
No backtracking.
You Get a Better View of Your Business
You’ll actually see how much you’re driving for work.
That can help with pricing and planning.
Ready to stop guessing your car expenses and start claiming properly? This is one of the easiest wins for sole traders.
Common Mistakes to Avoid
A few classic ones.
Trying to Rebuild It Later
You won’t remember every trip.
Start now.
Not Recording Purpose
“Trip” isn’t enough.
Say what it was for.
Mixing Personal and Business Without Notes
If it’s mixed, note it clearly.
Forgetting Odometer Readings
Without start and end, it’s not accurate.
Giving Up After a Week
Consistency matters more than perfection.
Stick with it.
The Easy Way to Get Started
Don’t overcomplicate it.
You just need a simple system you’ll actually use.
Here’s a solid starting point:
Download our free Sole Trader Kilometre Log template here
It gives you a clean format to track everything properly from day one.
No guesswork.
No confusion.
Just a proper car expense claim sole trader setup that works.
How Sole Makes It Stupidly Simple
Let’s be honest.
Manual logs can get annoying.
That’s where using an app helps.
With Sole, you can:
- Track trips on the go
- Log details quickly
- Keep everything organised
- Have records ready for tax time
No spreadsheets. No paper logs.
Just a clean system that fits into your day.
And once it becomes a habit, it barely feels like admin.
Build the Habit (This Is What Actually Matters)
This part makes or breaks it.
Keep It Quick
Log the trip straight after you finish driving.
Takes seconds.
Make It Routine
- Arrive at a job – log it
- Leave a job – log it
Simple pattern.
Don’t Aim for Perfect
Just aim for consistent.
That’s what gets results.
Conclusion
You’re already driving for work.
You might as well get the benefit from it.
A proper kilometre tracking Australia setup means:
- Bigger, accurate claims
- Clean records
- Less stress at tax time
No guessing. No missed money.
Make tax time less painful. Start tracking kilometres properly with Sole today, soleapp.com.au
FAQs
How many kilometres can I claim?
With the cents per km method, up to 5,000 business kilometres per car per year.
Do I need a logbook?
For the cents per km method, not a full logbook, but you still need a reasonable record. For the logbook method, yes.
Can I estimate my kilometres?
You can provide a reasonable estimate, but it must be based on real records. Guessing won’t hold up.
What if I forget to track a trip?
Try to record it as soon as possible. But the more consistent you are, the better your claim will be.
Is kilometre tracking worth it?
Absolutely. For many sole traders, it’s one of the biggest deductions available, if tracked properly.
