Tyres are a real cost of keeping a work ute on the road, so it’s a fair question whether the taxman helps foot the bill. In most cases the answer is yes, within limits — but how you claim depends on which method you use and how the vehicle is classed. The rules below are general in nature; your circumstances decide what you can actually claim, so treat your accountant or the ATO as the final word.

Are tyres a deductible expense for a work vehicle?

Broadly, expenses incurred in earning your income are deductible, and tyres on a genuinely work-used vehicle fall into that category. But you can’t simply add “new tyres $1,200” to your return on top of everything else. The ATO channels vehicle running costs through one of two methods, and tyres sit inside those methods rather than beside them. Private use is never deductible, so a ute that does the school run five days a week and one trip to a job site won’t get you far.

Method 1: Cents per kilometre

The simplest method. You claim a set rate for each work-related kilometre, capped at 5,000 business kilometres per car, per year. The rate is 88 cents per km for 2025–26 and 91 cents per km for 2026–27 (ATO figures — confirm the current rate).

The catch for tyres: this single rate is designed to cover all running costs — fuel, servicing, registration, insurance, depreciation and tyres. You cannot claim tyres, fuel or anything else on top. You don’t need receipts for every expense, but you do need to be able to show how you worked out the business kilometres. It suits low-mileage work use; heavy users usually do better with a logbook.

Method 2: The logbook method

Here you claim your work-use percentage of the vehicle’s actual running costs — and tyres are explicitly one of those costs, alongside fuel, oil, servicing, repairs, registration, insurance and depreciation. If your logbook shows the ute is used 80% for work, you can claim 80% of the tyre bill (and 80% of everything else).

To use it you need a valid logbook kept for a continuous 12-week period, which then remains valid for up to five years unless your usage pattern changes. You also keep receipts for the costs you’re claiming — including the tyre invoice. Buying a set just before 30 June won’t change your work-use percentage, but it does bring the deduction into that financial year (see the best time of year to buy tyres, which often lines up with EOFY sales).

Is a dual-cab ute even a “car” for these rules?

This is the trap that catches ute owners. The cents-per-km and logbook methods apply to a “car” — a vehicle designed to carry a load of less than one tonne and fewer than nine passengers. Many dual-cab utes have a payload over one tonne, which means they are not “cars” for these rules.

If your ute isn’t a “car,” you don’t use those two methods at all — you claim the actual work-related running costs (tyres included), apportioned for private use, under the general deduction rules. The practical upshot is similar for tyres, but the paperwork and the method differ, and this is exactly the kind of detail worth checking with a tax agent. Check your ute’s payload on the compliance placard.

Sole trader, employee or company?

Who owns and uses the ute matters. A sole trader or someone using their own vehicle for work generally uses the methods above. If the ute is a business or company asset, tyres are typically claimed as a business running expense, and a GST-registered business can usually also claim the GST credit on the tyre purchase. Fringe benefits tax can come into play with company vehicles used privately. Tyres are a consumable running cost, so they’re generally an immediate deduction rather than something written off over time like the vehicle itself.

How the methods compare for tyres

What records should you keep?

Whatever the method, keep the tyre tax invoice (showing the supplier, date, amount and GST), your logbook if you use one, and a sensible record of business versus private use. Buying from a major retailer makes getting a proper tax invoice easy — see our reviews of Bob Jane T-Marts and JAX Tyres & Auto. Because work utes often run pricier light-truck rubber, the deduction can be meaningful — see how much 4WD tyres cost compared to passenger tyres and always weigh a tyre on cost per kilometre, not just the sticker. Rideshare and delivery drivers face similar questions — see our guide to the best tyres for rideshare and Uber drivers.

Bottom line: Tyres on a genuinely work-used ute are generally claimable — through the logbook method (work-use % of the actual cost) or absorbed into the cents-per-km rate. Check whether your dual-cab is a “car” for tax purposes, keep the invoice, and confirm the detail with the ATO or a registered tax agent before you lodge.

Frequently asked questions

Can I claim the full cost of new tyres on my work ute?

Only if the ute is used 100% for work, which is rare. Under the logbook method you claim your work-use percentage of the cost; under cents per km the tyres are already covered by the rate. Private-use kilometres aren’t deductible.

Do I need receipts to claim tyres?

For the logbook method, yes — keep the tax invoice for the tyres along with your logbook. For the cents-per-kilometre method you don’t itemise receipts, but you must be able to show how you worked out your business kilometres.

Is buying tyres before 30 June a tax dodge?

No — it simply brings a legitimate work expense into the current financial year, and EOFF tyre sales often align with it. It doesn’t increase your work-use percentage or let you claim private use. Talk to your accountant about timing.

My dual-cab has a one-tonne-plus payload — does that change things?

It can. Utes designed to carry over one tonne generally aren’t “cars” for the cents-per-km and logbook rules, so you claim actual work-related running costs (tyres included) with apportionment instead. This is a common area to get a tax agent’s guidance.

This article is general information only and is not tax advice. Tax rules and rates change and depend on your circumstances. Confirm the current rules and your eligibility with the Australian Taxation Office or a registered tax agent. Rates are a guide as at the 2025–26 and 2026–27 years.