You’ve got yourself a Plug-in Hybrid Electric Vehicle (PHEV), and now it’s time to figure out how to claim back the fuel you’re using.

When you use a PHEV for business or commercial purposes, the ATO offers significant opportunities to claim your running costs. However, unlike a simple petrol receipt or a standard EV calculation, a PHEV requires a “hybrid” approach—because you are inevitably using both electricity and petrol.

Fortunately, WhipSmart has taken the ATO’s methodology and broken it down into a simple step-by-step guide. Follow along to see how you can claim back those expenses and ensure your novated lease is working as hard as possible for your wallet.

1. Gathering

You are going to need your actual petrol costs from the income year. Grab all those petrol and oil receipts you’ve stored in the glovebox, under the kids’ drink bottles, or tucked away in a home drawer.

2. Conversion

This sounds more daunting than it actually is. To find your total fuel volume, divide your total petrol spend by the average petrol price per litre for the year (at the time of conversion).

3. Calculate

Use the PHEV’s manufacturer fuel economy rating to determine the amount of kilometres you drove using petrol. You can usually find this in the ‘Condition B’ test cycle rating in your manual, or a quick Google search for your specific model will do the trick.

4. Determine

Look at your odometer and record the total kilometres driven. Subtract the reading you had at the start of the income year (July 1) from the reading at the end (June 30).

5. Work Out

Now we need to isolate your electric kilometres. Take your total kilometres (from Step 4) and subtract the petrol kilometres (from Step 3). ‘Bada bing bada boom’ – you now have your total electric kilometres.

6. Calculate (Again)

Multiply those electric kilometres by 4.2 cents (the ATO’s standard home charging rate). This gives you your total electricity cost for the year.

7. Combine

The last step—we promise! Add your petrol spend and your calculated electricity amount together to arrive at your total fuel cost.

Finally, apply your logbook’s business-use percentage to that total and send it off to the ATO to claim that tax back.

It really is that easy.

By mastering the mix of petrol and electricity, you can maximise your tax return and stay ahead of the curve. Whether you’re charging at home or filling up at the pump, getting your PHEV claim right is the final step in the hybrid revolution.