What is the ATO cents per kilometre rate for 2027-28?
Not set yet. The current rate is 91 cents per kilometre for the 2026-27 income year, and a new determination for 2027-28 is expected before 1 July 2027.
2027-28 rate tracker
ATO · Australia
ATO Cents Per Kilometre 2027-28: Not Set Yet, and What Applies Now
The ATO has not determined the 2027-28 cents per kilometre rate. Until it does, 91 cents per kilometre applies to work-related driving in 2026-27, capped at 5,000 kilometres per car for the year: an 89 cent base plus a temporary 2 cent uplift for 2026-27, which the ATO says does not carry into later years.
Status
Not set yet
Expected in June 2027, effective 1 July 2027
Current published rate
91 cents per kilometre
All cars · 2026-27 income year, from 1 July 2026
Capped at 5,000 work-related kilometres per car per year
Tracker by MileagePilotStatus checked Oct 14, 2026
What applies to work-related driving right now
For 2026-27 the cents per kilometre method pays one rate for every work-related kilometre, whatever the car and whatever it cost to run. Trips keep the rate in force on the day they were driven, and the method needs no written evidence — but a record of how the kilometres were worked out.
2026-27 income year
91 cents per kilometre
Every work-related kilometre, all cars
- Maximum per car, per year
- 5,000 work-related kilometres
- Evidence needed
- A record showing how the kilometres were worked out
Source: ATO cents per kilometre method (2026-27)
The cap is 5,000 kilometres per car per year, not per person: two cars means two caps.
What 91 cents is made of
The 2026-27 figure is the clearest guide to how 2027-28 will be calculated, because the ATO has said in writing what the next step is.
An 89 cent base, indexed
Future years
The ATO states that the calculated annual indexation rate applies to the 2026-27 base rate of 89 cents for later income years.
A 2 cent one-off uplift
2026-27 only
The published explanation calls the extra 2 cents a temporary one-off uplift for 2026-27, so it is not part of the base the next rate is indexed from.
Made by the Commissioner
Legislative instrument
The rate is determined under the cents per kilometre provision of the income tax law and commences on 1 July, which is why the determination is normally registered in June.
The rate by income year
Rates move with indexation rather than with fuel prices, so the series is short and mostly upward. The 2026-27 year is the first with an uplift on top of the base.
| Income year | Rate per kilometre | Note |
|---|---|---|
| 2026-27 | 91 cents | 89 cent base plus a 2 cent one-off uplift |
| 2024-25 and 2025-26 | 88 cents | Unchanged across two income years |
| 2023-24 | 85 cents | Indexed |
| 2022-23 | 78 cents | Indexed |
| 2020-21 and 2021-22 | 72 cents | Unchanged across two income years |
Source: ATO cents per kilometre method, and the 2026 determination on the Federal Register of Legislation.
What else decides the 2027-28 figure
Two rules outside the rate itself change what a claim is worth, and both are worth settling before the income year starts.
- Indexation instead of a cost study
Applied to the 89 cent base
The rate is adjusted annually rather than re-derived from running costs, which is why it never moves by more than a few cents.
- The 5,000 kilometre cap
Per car, per year
Kilometres above the cap earn nothing under this method, so a high-mileage driver should compare it with the logbook method rather than assume it wins.
- Work-related kilometres only
Commuting is excluded
Travel between home and work is not claimable, so the kilometres counted here are the ones driven for work itself.
- The logbook alternative
Written evidence, actual costs
The logbook method claims a business-use percentage of actual costs and has no kilometre cap, which can beat the fixed rate for a car with high running costs.
What to have ready before 1 July 2027
The income year turns over on 1 July, so the record-keeping choices made before then decide how easy the 2027-28 claim will be.
Log business kilometres per car
The cap applies per car, so a household or fleet total hides which car still has room under it.
Kilometer log templateKeep the record that shows how kilometres were worked out
The method needs no written evidence, but the ATO can ask how the figure was reached — a diary entry per trip is enough.
Mileage log templatesCompare the two methods before committing
A car with high running costs or heavy use can do better on the logbook method, and switching mid-year means keeping evidence for both.
ATO logbook methodExclude the daily commute
Only work-related travel counts, so a log that starts at the front door will overstate the claim.
Watch the instrument, not just the ATO page
The new rate appears as a determination on the Federal Register of Legislation in June; the ATO calculator pages follow it.
Common questions
How will the 2027-28 rate be calculated?
The ATO states that for income years after 2026-27 the calculated annual indexation rate is applied to the 2026-27 base rate of 89 cents. The extra 2 cents for 2026-27 is described as a temporary one-off uplift, so it is not part of that base.
When is the new rate published?
The determination that set the 2026-27 rate was made on 23 June 2026 and commenced on 1 July 2026. A 2027-28 instrument would be expected in June 2027, and it appears on the Federal Register of Legislation as well as on the ATO site.
Does the 2027-28 rate apply to kilometres driven in 2026-27?
No. Each income year uses the rate in force for that year, so 2026-27 kilometres are claimed at 91 cents even when the deduction is worked out after the following 1 July.
Is there a cap on the cents per kilometre method?
Yes — a maximum of 5,000 work-related kilometres per car, per income year. Kilometres beyond that earn nothing under this method, which is why high-mileage drivers often compare it with the logbook method.
Do electric or hybrid cars get a different rate?
No. The cents per kilometre method pays one rate for all cars, regardless of how they are powered, which is different from the per-kilometre rates some other countries publish by vehicle type.
Do I need written evidence to use the fixed rate?
Not written evidence of the costs, but you do need a record showing how the work-related kilometres were calculated, because the ATO can ask for it.
Where can I check the 2027-28 rate the day it is registered?
The Federal Register of Legislation publishes the instrument, and the ATO's cents per kilometre page carries the rate for each income year. This page is updated with the same figure.
Official references
- ATO: cents per kilometre method
The rate for each income year, the 5,000 kilometre cap, and the evidence rules.
- 2026 determination: cents per kilometre rate
The instrument made on 23 June 2026 that set 91 cents for 2026-27, including the 89 cent base and the 2 cent uplift.
- ATO software developers: 2026 determination summary
The ATO's own explanation that future income years index the 89 cent base.
- ATO: logbook method
The alternative method, with no kilometre cap and a written-evidence requirement.
Continue with tools
Work with the rates that are published today, check the history, or download the records you will need at the start of the year.