Cents per kilometre calculator

Cents per kilometre rates by income year

The rate is set each year by legislative instrument and applies to the income year, not the calendar year. Two rates matter at any given time: the one for the return you are lodging, and the one for the year you are currently driving.

The calculator above runs on 88c, the rate for 2025-26, because that is the year most people are lodging a return for. If you are planning ahead for the year you are driving now, the 2026-27 rate is 91c, which lifts the maximum claim to $4,550.

How the two methods differ

There are two ways an individual can claim work-related car expenses, and you choose one per car, per income year.

Cents per kilometre pays a flat rate per work kilometre, capped at 5,000 kilometres per car per year. The rate is meant to cover everything: fuel, servicing, insurance, registration, and depreciation. You do not need a logbook, though you do need to be able to show how you worked out the kilometres. At 88c, the most anyone can claim under this method is $4,400.

The logbook method works out what percentage of your driving is for work, then applies that percentage to what the car actually cost you to run. There is no cap. The price is twelve continuous weeks of records, and written evidence of the costs.

A worked example

Take the default figures above: 9,600 work kilometres a year, $8,400 in running costs, and 68% business use from a logbook.

• Logbook: $8,400 × 68% = $5,712
• Cents per kilometre: the 9,600 kilometres are cut to the 5,000 km cap, then 5,000 × 88c = $4,400

The logbook method is ahead by $1,312, and the gap widens with every extra kilometre, because the capped method stops counting at 5,000.

Note what the cap does. Someone driving 20,000 work kilometres gets exactly the same $4,400 under cents per kilometre as someone driving 5,000. Every kilometre past the cap is worth nothing unless you have a logbook.

Which method suits you

Cents per kilometre is usually better if:

• you drive well under 5,000 work kilometres a year
• your car is cheap to run, old, or long since depreciated
• you have not kept a logbook and the year is already over
• the effort of twelve weeks of records outweighs a few hundred dollars

The logbook method is usually better if:

• you are near or past 5,000 work kilometres a year
• your business use is high, roughly 50% or more
• the car is expensive to run, newer, financed, or depreciating fast
• your car is genuinely a work tool rather than an occasional one

Run your own numbers above rather than relying on the rules of thumb. The crossover point moves with your costs.

What the logbook method actually requires

If the calculator says the logbook method wins, this is what you are signing up for:

• Twelve continuous weeks of records, in a period that is broadly representative of your year. See does the 12 weeks have to be continuous.
• Every journey recorded with its reason, destination, start and end odometer readings, and kilometres, written up at the time rather than at tax time. See what a logbook has to contain.
• Odometer readings each year, not just during the logbook period. See what odometer readings you need.
• Written evidence of the costs. The $300 substantiation threshold does not apply to car expenses. See how long to keep your logbook and receipts.

The upside is that the twelve weeks are done once. A logbook is generally valid for that income year and the four following years, so long as it stays representative of how you use the car.

Common questions

Can I use both methods in the same year?

Not for the same car in the same income year. You choose one method per car, per year. If you use two cars for work, each can use a different method.

Can I switch methods next year?

Yes. The choice is made each income year. Many people use cents per kilometre while they build up to keeping a logbook, then switch once the logbook exists.

Does the 5,000 km cap apply per car or per person?

Per car, per income year. Two qualifying cars used for work each have their own cap.

Do I need records for cents per kilometre?

You do not need a logbook, but you do need to be able to show how you arrived at the number of work kilometres. A diary, a roster, or a pattern of regular trips you can describe will do. A round number with nothing behind it will not.

Are tolls and parking included in the rate?

No. Parking fees and tolls are not car expenses under either method. Where they are work-related they are claimed separately, and in full.

Does the commute count as work kilometres?

Generally no, under either method. Travel between home and your regular workplace is private. See can you claim driving from home to work.

Can I use this if my car is on a novated lease?

Generally no. Both methods require you to own or lease the car, and a novated lease usually means you do neither. See what counts as a car.

Rates checked against source on 2 August 2026. This calculator is a record-keeping aid, not tax advice. For advice on your own situation, talk to a registered tax agent.