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Cents per kilometre method
Only use this method if you are a sole trader or partnership (where at least one partner is an individual) claiming for a car.
On this page:
The cents per kilometre method:
- uses a set rate for each kilometre travelled for business
- allows you to claim a maximum of 5,000 business kilometres per car, per year
- doesn’t require written evidence to show exactly how many kilometres you travelled (but we may ask you to show how you worked out your business kilometres, for example diary records)
- uses a rate that takes all your vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.
Rates are reviewed regularly. The rate is:
- 72 cents per km for 2020–21
- 68 cents per km for 2018–19 and 2019–20
- 66 cents per km for 2017–18, 2016–17 and 2015–16.
To work out how much you can claim, multiply the total business kilometres you travelled by the rate.
Things to remember: