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  • Cents per kilometre method

    The cents per kilometre method can be used:

    • by sole traders and partnerships (if at least one partner is an individual)
    • when the motor vehicle is a car.

    Under the cents per kilometre method:

    • you can claim a maximum of 5,000 business kilometres per car
    • 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 (such as, calendar or diary records)
    • the rate covers your running expenses and depreciation – this means you can't 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. The rates are reviewed each year.

    For the 2015–16, 2016–17 and 2017–18 income years the rate is set at 66 cents per kilometre. The rate increased to 68 cents per kilometre from the 2018–19 income year.

    To work out how much you can claim, multiply:

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

    This figure takes into account all your vehicle running expenses, including depreciation.

    Example: Cents per kilometre method

    Jane travelled 3,000 business kilometres during the 2017–18 income year. Jane worked out she could claim $1,980 for her vehicle expenses, as follows:

    3,000 km × 66c per km = $1,980

    End of example

    For claims above 5,000 business kilometres you can use the logbook method or claim the actual costs.

    See also:

    Last modified: 20 Nov 2018QC 33712