• Cents per kilometre method

    Under the cents per kilometre method:

    • you can claim a maximum of 5,000 business kilometres per vehicle
    • you do not need written evidence to show how many kilometres you have travelled, but we may ask you to show how you worked out your business kilometres
    • you cannot make a separate claim for depreciation of the car’s value.

    If you use the cents per kilometre method your claim is based on a set rate for each business kilometre travelled. This rate is set at 66 cents per kilometre for the 2015-16 year, 2016-17 year and the 2017-18 year. The rates are reviewed each year.

    To work out how much you can claim, multiply:

    • the total business kilometres you travelled
    • the number of cents per kilometre.

    This figure takes into account all your vehicle running expenses.

    Example: Cents per kilometre method

    Jane travelled 3,000 business kilometres during the 2016-17 income year. Jane worked out she could claim $1,980 for her vehicle expenses, as follows:

    • 3,000 km × 66 cents per km = $1,980.
    End of example
    Last modified: 21 Jun 2017QC 33712