Maximum 5,000 km for cents method. Rate: $0.88/km.
As recorded in your 12-week logbook.
Fuel, insurance, rego, servicing, depreciation, etc.
Cents Per Km
$3,080.00
Logbook Method
$7,200.00
Recommended
Logbook method saves you $4,120.00 more in deductions.
How does the cents per kilometre method work?
You can claim $0.88 per business kilometre, up to a maximum of 5,000 km per year. This is the simplest method -- no receipts needed for fuel/expenses. You just need to be able to show how you calculated your business km (e.g. a reasonable estimate based on your work pattern).
How does the logbook method work?
You keep a logbook for a continuous 12-week period to determine your business-use percentage. You then apply this percentage to all your actual car expenses (fuel, insurance, registration, servicing, depreciation, interest on car loan). The logbook is valid for 5 years unless your circumstances change significantly.
Which method is better?
The logbook method is often better for high-kilometre or expensive vehicles with significant business use. The cents-per-km method is simpler and better when your total expenses are low or you drive fewer than 5,000 business km per year.
ATO-Aligned: Cents per km rate of $0.88 is for 2025-26. Commuting from home to your regular workplace is not claimable. Travel between workplaces or to alternative workplaces generally is.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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