What is the 2026-27 cents per kilometre rate?
The rate is 91 cents per kilometre, capped at 5,000 work-related kilometres per car for the income year. It rose from 88 cents per kilometre in 2025-26.
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Cars2026-27
91 cents per kilometre
up to 5,000 kilometres
Country rates by MileagePilotUpdated Sep 4, 2026
ATO rates in force
The cents-per-kilometre rate for 2026-27 and the cap that comes with it. The rate is a flat amount for every work-related kilometre, so receipts are not part of the claim.
2026-27
In force| Trip or vehicle | Rate | Source |
|---|---|---|
| Cars | Cents per kilometre (up to 5,000 km) · 91 cents per kilometre | ATO cents per kilometre method (2026-27) |
What decides the figure
- The rate covers all of the car's running costs for the kilometres claimed, up to 5,000 work-related kilometres per car for the year. The cap is per car, not per person.
- Cents per kilometre needs a record of how the work kilometres were worked out, such as a diary or the ATO app, and the car has to be yours.
- The logbook method claims actual running costs multiplied by the work-use percentage from a 12-week logbook. One method per car per income year.
- The rate is 91 cents per kilometre for 2026-27, up from 88 cents per kilometre in 2025-26.
ATO rates by year
The cents-per-kilometre rate by income year, back to 2021-22. The cap and the structure of the claim have not changed; the rate is indexed.
2026-27
Cars · 91 cents per kilometre
2025-26
Cars · 88 cents per kilometre
2024-25
Cars · 88 cents per kilometre
2023-24
Cars · 85 cents per kilometre
2022-23
Cars · 78 cents per kilometre
2021-22
Cars · 72 cents per kilometre
Start with your case
Australia gives you a choice of two methods for the same car, and the choice is made again each income year.
You want the simpler claim
Cents per kilometre needs a record of the work kilometres and no receipts. The logbook method needs a 12-week logbook plus written evidence for the costs.
Logbook vs cents-per-kmYour running costs are high
A car that is expensive to run, or a year with heavy work use, can produce a larger claim through actual costs multiplied by the work-use percentage.
ATO logbook method guideYou would rather track trips as you go
The ATO app records trips and receipts during the year, which supports either method better than rebuilding the year in June.
myDeductions car expensesYou are not sure the travel counts
Ordinary travel between home and work is private. The page that follows works through the trips that do count.
Australia car expenses FAQWhat the record has to show
What you keep depends on the method, and either version has to survive five years from the date the return is lodged.
- Cents per kilometre: a diary, app log, or other record of the work kilometres, plus proof the car is yours.
- Logbook method: a 12-week logbook with the odometer at the start and end of the period and the details of each trip.
- Logbook method: receipts or written evidence for the running costs behind the claim.
How long to keep it
Keep the records for five years from the date you lodge the return that claims them.
What each car-expense method requires, and the five-year retention rule.
Source: ATO: records you need to keep
Common questions
How many kilometres can I claim?
Cents per kilometre allows up to 5,000 work-related kilometres per car per income year, and nothing beyond that under this method. The logbook method has no kilometre cap, because it claims a share of the car's actual costs.
Can I use both methods in one year?
Not for the same car in the same income year. If you drive two cars, each one is worked out under whichever method gives the larger claim for that car.
Does travelling to and from work count?
No. Ordinary travel between home and the workplace is private travel and is not claimable. Work-related travel is the driving you do in the course of the work itself.
How long does a logbook stay valid?
A logbook kept over a continuous 12-week period can support later years while the pattern of work driving stays materially the same, which is why the first careful logbook is worth the effort.
Official references
- ATO: cents per kilometre method
Eligibility, the per-year cap, and the record the method needs.
- ATO: records you need to keep
The five-year retention period for work-related expense records.
Explore Australia
Every ATO page on the site: the rates in force, the calculators that price them, and the templates that support a claim.