there are two widely used methods to claim car expenses in your tax return – Log Books method and Cents per rate method provided you meet the ATO conditions. Mainly the car should have been used to travel for work purposes from work to work or to clients. The car has to be registered on the tax payers name. The log book method is used when the tax payer has used the car for more than 5000 kms for work. In this case tax payer has to maintain a log book and also keep receipts for all the car claims such as fuel, insurance, repairs, etc. The cents rate method is used when the tax payer has travelled less the 5000 kms. In this case a diary of the kms has to be maintained but no receipts are required.
There are some other conditions to be met while claiming car expenses and it is best to discuss your situation with the Tax agent before you decide to make the claims.