Cents per kilometre method

How it works

The cents per kilometre method allows you to claim a set rate for each work-related kilometre you travel, as long as you meet the conditions.

Using this method, you:

• can claim a maximum of 5,000 km for work-related use per year
• don't need receipts for your expenses (e.g. fuel receipts)
• do need a record to show how you calculate your work-related kilometres (e.g. using a diary or the myDeductions tool in the ATO app)
• need to be able to show that you own the car.

The rate per km covers all of your car expenses including decline in value, registration and insurance, maintenance, repairs and fuel costs.

You can’t add these, or any other car expenses, on top of the rate when calculating your deduction.

Calculating your deduction

To calculate your deduction using this method, multiply the number of work-related kilometres you travel in the car by the rate per kilometre for that income year.

You can claim a maximum of 5,000 work-related kilometres per car.

'Work-related kilometres' are the kilometres your car travels in the course of earning your assessable income. For more information on what travel is incurred in the course of earning your assessable employment income, see Trips you can and can't claim.

You can work out the number of work-related kilometres the car travelled during the income year by making a reasonable estimate. For example, if you make a 20 kilometre work-related round trips in your car once a week and you worked for 48 weeks in the year, your work-related kilometres will be 960 (20 kilometres × 48 weeks).

Use the rate for the income year for which you are claiming a deduction:  

• 2024–25 and 2025–26: use 88 cents per kilometre
• 2023–24: use 85 cents per kilometre
• 2022–23: use 78 cents per kilometre
• 2020–21 and 2021–22: use 72 cents per kilometre
• for rates in earlier years, see Prior year tax return forms and schedules.

You need to keep records that show how you work out your work-related kilometres.

If you and another joint owner use the car for separate income-producing purposes, you can each claim up to 5,000 work-related kilometres.

Keeping records for cents per kilometre method

If you use the cents per kilometre method, you don't need receipts.

You do need to be able to show that you own the car and how you work out your work-related kilometres. For example, you could record your work-related trips:

• in a diary
• using the myDeductions tool in the ATO app.