The simple math
For the 2026-27 income year (1 July 2026 to 30 June 2027) the ATO rate is 91 cents per work kilometre, up from 88 cents. You can claim up to 5,000 km per car.
- 5,000 km × $0.91 = $4,550 for 2026-27
- 5,000 km × $0.88 = $4,400 for 2025-26 (the return you may be lodging now)
The rate covers everything: fuel or charging, rego, insurance, servicing, tyres and depreciation. So you can’t add those costs on top.
Claims by kilometres
| Work km in the year | 2026-27 (91c) | 2025-26 (88c) |
|---|---|---|
| 1,000 | $910 | $880 |
| 2,000 | $1,820 | $1,760 |
| 3,000 | $2,730 | $2,640 |
| 4,000 | $3,640 | $3,520 |
| 5,000 | $4,550 | $4,400 |
| 6,000 | $4,550 | $4,400 |
| 8,000 | $4,550 | $4,400 |
Drove more than 5,000 work km? The cents per km claim stays at $4,550. That is the moment to think about a logbook.
Cents per km or logbook? A close call
In the calculator above we use a petrol Mazda CX-5 (7.4 L/100 km in the Green Vehicle Guide) that cost $45,000. It does 20,000 km a year, and 25% is work — exactly 5,000 km.
- Fuel: 20,000 km × 15.2c = $3,041
- Rego, insurance and servicing: $3,500
- Decline in value (25% of $45,000): $11,250
- Total car costs: $17,791 × 25% work use = $4,448
So cents per km gives $102 more here, with far less paperwork. The logbook pulls ahead when your work share is higher, or when the car is newer and more expensive (bigger depreciation).
What counts as a work kilometre?
- Driving between two workplaces, to visit clients, or to a work conference.
- Carrying bulky tools you need for work, when there is no secure place to leave them at work.
- Not the normal trip between home and your regular workplace, even if you do a small errand on the way.
You don’t need a logbook for cents per km, but you must be able to show how you worked out your kilometres — a diary of regular trips is enough.
One car or two?
The 5,000 km cap applies per car. If you use two cars for work during the year, you can claim up to 5,000 km for each of them with cents per km — up to $9,100 in 2026-27. You can also use cents per km for one car and the logbook for the other. The car has to be owned or leased by you, though; for a car provided by your employer you can’t claim car expenses at all.
FAQ
What is the maximum cents per km claim for 2026-27?
$4,550: 5,000 km × 91 cents. For 2025-26 the maximum is $4,400 (5,000 km × 88 cents).
Can I claim more than 5,000 km with cents per km?
No. The method is capped at 5,000 work km per car. If you drive more, the logbook method may give a bigger deduction.
Do I need receipts for cents per km?
No receipts are needed, but you must be able to show how you worked out your work kilometres, for example with a diary of your regular work trips.
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).