• Claiming a deduction for car expenses using the cents per kilometre method

    What is the cents per kilometre method?

    You can use this method to claim up to a maximum of 5,000 work-related kilometres per car even if you have travelled more than 5,000 work-related kilometres. For example, if you travelled 5,085 work-related kilometres, you can only claim the cost of travelling 5,000 kilometres with this method. You cannot claim for the extra 85 kilometres.

    You do not need written evidence but you may need to be able to show how you worked out your work-related kilometres.

    Calculating your deduction

    Step 1

    Multiply the total work-related kilometres travelled (a maximum of 5,000 for each car) by 66 (which is the cents per kilometre rate for all cars). Divide your answer by 100 to work out the amount in dollars that you can claim.

    Work out the amount you can claim for each car.

    Step 2

    Write the total amount on your tax return.

    Work it out:

    Find out more

    If you need help applying this information to your own situation, phone us on 13 28 61.

    • Last modified: 22 Jun 2016QC 16993