# Calculate Australian car expense deductions

Calculate a business car deduction with cents per kilometre or a logbook, or the business share of costs for a ute, van or motorcycle, and see the record-keeping each one needs.

Canonical: https://aroai.com/tools/au_vehicle_expense_deduction/

## Tool reference

MCP tool ID: `au_vehicle_expense_deduction`. Availability: Live. Country: Australia.

Credit use: 1 credit.

## Input schema

```json
{
  "$schema": "https://json-schema.org/draft/2020-12/schema",
  "type": "object",
  "properties": {
    "financial_year": {
      "type": "string",
      "enum": [
        "2024-25",
        "2025-26",
        "2026-27"
      ]
    },
    "entity_type": {
      "type": "string",
      "enum": [
        "individual",
        "sole_trader",
        "company",
        "partnership",
        "trust"
      ]
    },
    "vehicle_meets_ato_car_definition": {
      "type": "boolean"
    },
    "vehicle_payload_kg": {
      "description": "Load-carrying capacity (payload) in kg, normally GVM less unladen mass. The ATO car test uses this, not GVM: under 1,000 kg and fewer than 9 passengers is a car. A payload of 1,000 kg or more means not a car; a lower payload alone does not make it a car if it has 9 or more seats or is a motorcycle.",
      "type": "number",
      "minimum": 1,
      "maximum": 100000
    },
    "seating_capacity": {
      "description": "Seats including the driver. A car has fewer than 9; 9 or more is not a car whatever the payload.",
      "type": "integer",
      "minimum": 1,
      "maximum": 100
    },
    "is_motorcycle": {
      "description": "True for a motorcycle or similar vehicle, which is never a car.",
      "type": "boolean"
    },
    "vehicle_gvm_kg": {
      "description": "Gross vehicle mass in kg, for reference only; GVM does not decide car status.",
      "type": "number",
      "minimum": 1,
      "maximum": 200000
    },
    "method": {
      "type": "string",
      "enum": [
        "cents_per_kilometre",
        "logbook"
      ]
    },
    "business_kilometres": {
      "type": "integer",
      "minimum": 0,
      "maximum": 1000000
    },
    "logbook_business_use_percent": {
      "type": "number",
      "minimum": 0,
      "maximum": 100
    },
    "provided_to_employee": {
      "type": "boolean"
    },
    "fuel_cost": {
      "description": "AUD fuel cost; required for logbook. Exclude recoverable GST.",
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "repairs_and_maintenance": {
      "description": "AUD repairs and maintenance; required for logbook. Exclude recoverable GST.",
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "insurance": {
      "description": "AUD vehicle insurance; required for logbook. Exclude recoverable GST.",
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "registration": {
      "description": "AUD vehicle registration; required for logbook. Exclude recoverable GST.",
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    },
    "decline_in_value": {
      "description": "AUD decline in value; required for logbook after applying any car limit.",
      "type": "number",
      "minimum": 0,
      "maximum": 100000000
    }
  },
  "required": [
    "financial_year",
    "entity_type",
    "vehicle_meets_ato_car_definition"
  ],
  "additionalProperties": false
}
```

## Example input

```json
{
  "financial_year": "2025-26",
  "entity_type": "sole_trader",
  "vehicle_meets_ato_car_definition": true,
  "method": "logbook",
  "business_kilometres": 12000,
  "logbook_business_use_percent": 65,
  "fuel_cost": 3800,
  "repairs_and_maintenance": 1100,
  "insurance": 1400,
  "registration": 900,
  "decline_in_value": 5200
}
```

## Usage notes

- Cents per kilometre is for individuals and sole traders and caps at 5,000 km.
- Cents per kilometre needs only your business kilometres; the logbook method applies your business-use percentage to actual costs.
- Exclude GST you can claim back.