Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The motorcycle or other vehicle is used in carrying on the business.
- A ute or van belongs here only when it is designed to carry one tonne or more, or 9 or more passengers; a lighter vehicle designed for fewer passengers can be a car under Division 28.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Private use must be excluded.
- Do not use cents per kilometre for a motorcycle, truck or another vehicle that is not a car.
- A ute or van designed to carry less than one tonne and fewer than 9 passengers can be a car and must use the applicable car-method rule.
How the amount is worked out
Claim actual eligible operating and decline-in-value costs multiplied by business use.
Records the ATO expects
- Running-cost invoices
- Odometer records
- Business-use calculation
Where this rule comes from
Primary source: ATO deductions for motor vehicle expenses (ATO business motor vehicle methods and vehicle definitions). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.