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Vehicles

Cents per Kilometre Deduction Calculator

Estimate your work-related car expense deduction using the ATO cents per kilometre method, capped at 5,000 business kilometres.

c/km

Your results

Estimated deduction$3,520.00
Kilometres claimed (capped at 5,000)4,000 km

Calculation breakdown

Deduction
Deduction = min(business km, 5,000) × ATO rate

Worked example

4,000 business kilometres at 88c/km gives an estimated deduction of $3,520.

Assumptions

  • Capped at 5,000 business kilometres per car per year.
  • Confirm the current ATO rate before lodging your return.

How this calculator works

The cents per kilometre method lets you claim a flat rate per business kilometre travelled, capped at 5,000km per car each year, without needing to keep receipts for individual expenses. Enter your business kilometres travelled and the current ATO rate to estimate your deduction.

Rates sourced from the Australian Taxation Office for the 2026–27 financial year. Last reviewed 01/07/2026.

Frequently asked questions

What is the current ATO rate?

The ATO sets and periodically updates the cents per kilometre rate; enter the current published rate as this calculator does not assume a fixed figure.

What if I drove more than 5,000 business kilometres?

You can still only claim up to 5,000km under this method; for higher business use consider the logbook method instead.

Do I need written evidence?

You generally don't need receipts under this method, but you should be able to show how you worked out your business kilometres.

Rates and thresholds are configured for the 2026–27 Australian financial year and should be reviewed when government settings change.

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