ATO cents per km rates
| Income year | Rate | Max claim (5,000 km) |
|---|---|---|
| 2026-27 | 91c | $4,550 |
| 2025-26 | 88c | $4,400 |
| 2024-25 | 88c | $4,400 |
| 2023-24 | 85c | $4,250 |
The rate covers all running costs, including fuel or electricity, registration, insurance, servicing and depreciation. You can’t claim those separately. Car limit for depreciation: $69,674 (2025-26) and $69,883 (2026-27).
Rules by vehicle type
| Vehicle | Cents per km | FBT if employer-provided |
|---|---|---|
| Petrol / diesel / hybrid car or SUV | 91c (2026-27) | Statutory formula: 20% of base value a year |
| Plug-in hybrid | 91c | 20% formula — exempt only if the arrangement was committed before 1 April 2025 |
| Battery electric / hydrogen fuel cell | 91c (covers charging) | Exempt if price at first sale ≤ fuel-efficient LCT threshold ($91,387 for 2025-26, $91,661 for 2026-27) and first held and used from 1 July 2022 |
| Ute or van (carrying 1 tonne or more, or 9+ seats) | Not a “car” — claim actual costs | Can be exempt if private use is limited to travel to and from work and minor, infrequent use |
| Motorcycle | Not a “car” — claim actual costs | Residual benefit rules |
Electric car exemption: proposed changes
On 5 May 2026 the Government announced that the full exemption continues until 31 March 2027. From 1 April 2027 it would apply only to electric cars valued at $75,000 or less; cars above $75,000 but below the LCT threshold would get a 25% discount on FBT payable. From 1 April 2029 all eligible electric cars would get the 25% discount. Existing leases are not affected. The ATO says this measure is not yet law (page updated 3 November 2026).
Model data used
Presets use combined fuel or energy consumption from the Australian Government’s Green Vehicle Guide (lab test figures, one listed variant per model). Real-world use varies.
FAQ
What is the ATO cents per km rate for 2026-27?
91 cents per kilometre from 1 July 2026, up from 88 cents for 2024-25 and 2025-26. You can claim up to 5,000 work km, so the maximum is $4,550.
How much can I claim for 4,000 work km?
$3,640 for 2026-27 (4,000 × 91c) or $3,520 for 2025-26 (4,000 × 88c).
How much FBT is payable on a $60,000 car?
Under the statutory formula the taxable value is $12,000 (20%). Grossed up by 2.0802 and taxed at 47%, the FBT is about $11,732 a year, unless the car is an eligible electric car.
Are plug-in hybrids still exempt from FBT?
Only if the car was used under an arrangement committed to before 1 April 2025. New plug-in hybrid arrangements from that date pay FBT like a petrol car.
Sources (checked 5 November 2026): Income Tax Assessment (Cents per Kilometre Deduction Rate for Car Expenses) Determination 2026, F2026L00785, registered 23 June 2026 (91c for 2026-27); ATO cents per kilometre method page; ATO Depreciating assets guide 2026 (car limit $69,674) and “Car thresholds from 1 July” (9 June 2026: car limit $69,883, LCT fuel-efficient $91,661); ATO Luxury car tax rate and thresholds; ATO FBT rates and thresholds (47%, gross-up 2.0802/1.8868, statutory 20%); Treasury joint media release “Fairer tax treatment to encourage affordable EVs” (5 May 2026) and ATO “Electric car discount” new-legislation page; Green Vehicle Guide (greenvehicleguide.gov.au); Australian Institute of Petroleum weekly prices (week ending 6 September 2026).