ATO Cents per Km Rate 2025-26 Example
For 2025-26, the ATO cents-per-kilometre rate is 88 cents per kilometre. Multiply eligible work-related kilometres by 88c to estimate the claim.
Short answer
For 2025-26, the ATO cents-per-kilometre rate is 88 cents per kilometre. A simple estimate multiplies eligible work-related kilometres by AUD 0.88, subject to the 5,000 work-related kilometre cap per car and recordkeeping expectations.
At a glance
- Use 88c/km for eligible 2025-26 work-related car kilometres.
- The cents-per-kilometre method is capped at 5,000 work-related kilometres per car.
- Do not include ordinary home-to-work commuting unless a specific exception applies.
- Use the logbook method instead if you need to claim actual car costs through a business-use percentage.
2025-26 calculation example
If you have 3,200 eligible work-related kilometres for 2025-26, multiply 3,200 by AUD 0.88. The estimated cents-per-kilometre claim is AUD 2,816.
The calculation is deliberately simple, but the input still matters. The kilometres should be work-related car travel, not a total odometer movement for the year.
When the example is not enough
Use the cents-per-kilometre method when you want a simple claim based on kilometres. Use the logbook method when actual costs and business-use percentage are more relevant, especially where running costs are high or business use is substantial.
- Keep notes showing how you worked out the work-related kilometres.
- Keep the tax year aligned with the ATO rate year.
- Compare against the logbook method before assuming the simple method gives the better result.
Official references
Official rate guide and calculator handoff for the current tax year.
Compare the simple method with the detailed logbook workflow.
Official ATO guidance for the cents-per-kilometre method and kilometre cap.
Common questions
What is 3,200 km at the 2025-26 ATO rate?
At 88 cents per kilometre, 3,200 eligible kilometres gives an estimated claim of AUD 2,816.
Can I use the 88c/km rate for commuting?
Ordinary home-to-work commuting is usually not included. Use only eligible work-related car kilometres unless a specific rule applies.
Continue with tools
Move from policy guidance into the calculator, rate page, or template that fits the same workflow.