Australia · ATO

Mileage tracking for Australian drivers.

The ATO's cents-per-km method is capped at 5,000 km per car per year. After that ceiling, the only way to claim more is the logbook method - a 12-week representative period plus actual expenses. Most rideshare drivers also need to register for GST regardless of income, which is unique to Australia.

TruMile handles the cents-per-km cap, the logbook-method alternative, and the unique Australian rideshare-GST requirements. Tax year runs 1 July to 30 June.

Rate at a glance

Unit: kilometres · Currency: AUD · Tax year start: 7/1 · Authority: ATO

ATO cents-per-km method is capped at 5,000 km per car per year regardless of actual business kilometres driven. The logbook method is the alternative for drivers exceeding the cap; it requires a 12-week representative logbook plus documentation of actual vehicle expenses. Tax year runs from 1 July to 30 June.

All Australia pages

ATO Cents-per-km Rate 2025-26: 88¢/km, 5,000 km Cap

The Australian Taxation Office's cents-per-km rate for the 2025-26 financial year (1 July 2025 to 30 June 2026) is 88 cents per business kilometre. The method is capped at 5,000 business kilometres per car per year. Beyond that ceiling, drivers must switch to the logbook method to claim more.

ATO Cents-per-km Rate History

The ATO reviews its cents-per-km rate annually and announces changes for the new financial year (which begins 1 July). The rate has trended up steadily since 2023 in response to fuel and vehicle cost inflation. The 5,000 km cap has not changed.

ATO Cents-per-km Rate 2026-27: 91¢/km, 5,000 km Cap

The Australian Taxation Office's cents-per-km rate for the 2026-27 financial year (1 July 2026 to 30 June 2027) is 91 cents per business kilometre, up from 88 cents in 2025-26. The method is capped at 5,000 business kilometres per car per year, making the maximum deduction $4,550 per car. Beyond that ceiling, drivers must switch to the logbook method to claim more.

Free ATO Car Expenses Calculator (2026-27)

Enter your business kilometres for the financial year (1 July to 30 June). The calculator applies the current 91-cent rate (2026-27), caps at 5,000 km per car, and shows when you would benefit from switching to the logbook method instead.

ATO Logbook Method: 12-Week Guide

The logbook method is the alternative to cents-per-km for drivers who exceed the 5,000 km cap or have high actual vehicle costs. It requires a 12-week representative logbook plus documentation of all vehicle expenses for the year.

Cents-per-km vs Logbook: Which Saves More?

Australia is unique among the four jurisdictions TruMile supports in offering two genuinely different methods that produce very different deductions for very different drivers. Picking the wrong one costs real money.

How to Claim Car Expenses on myTax

Car expenses are claimed in the 'Work-related car expenses' section of your individual tax return on myTax. Sole traders use the business schedule (Schedule B). The mechanics are straightforward once you know which section maps to your method.

Australian Rideshare Drivers: GST Registration Required

Australia is unique in requiring rideshare drivers to register for Goods and Services Tax regardless of how much they earn. Other gig workers in Australia have a $75,000 income threshold; rideshare drivers do not. This affects how Uber, Ola, and DiDi drivers price their work and claim deductions.

ATO Car Expenses for Food Delivery Drivers (2025-26)

Food delivery drivers in Australia are classified as independent contractors by platforms such as Uber Eats, DoorDash, Menulog, and Deliveroo. That makes your business kilometres deductible under the ATO car expense rules. The method you choose - cents-per-km or logbook - depends on how many kilometres you drive each financial year.

ATO Car Expenses for Tradies: Electricians, Plumbers, and Builders

Electricians, plumbers, gas fitters, and builders commonly drive 20,000 to 40,000 kilometres a year for work - well above the ATO cents-per-km method's 5,000 km annual cap. The logbook method is usually the right approach, and vans and heavy utes follow different ATO rules than cars entirely.

ATO Mileage Log Requirements: What Records Does the ATO Expect?

The ATO does not require a specific form or format for car expense records, but it sets clear expectations for content and timing. The standard across both claim methods is contemporaneous documentation - recorded at or near the time of the trip, not reconstructed at year-end from memory.

ATO Car Expenses for Sole Traders: Schedule B, Not D1

If you run a sole trader business with an ABN and use your car for that business, you claim car expenses as a business deduction on the business schedule of your myTax return - not on the work-related car expenses section, which is for employees only. The same two ATO methods apply, but they go on a different part of the return.

ATO Rideshare Driver Tax Guide 2026-27: Car Expenses and the BAS Calendar

Rideshare drivers in Australia claim car expenses under the ATO cents-per-km method at 91 cents per business kilometre for 2026-27 (from 1 July 2026), capped at 5,000 km per car, for a maximum deduction of 5,000 x 0.91 = $4,550. Drivers above that cap should use the logbook method instead. On top of the income-tax deduction, every rideshare driver must be registered for GST and lodge a Business Activity Statement, so this guide puts the car-expense claim and the BAS calendar in one place for Uber, Ola, and DiDi drivers.

ATO Car Expenses for Nurses and Healthcare Workers: Employed vs Contractor

Nurses and healthcare workers who use their own car for work claim car expenses under the ATO's cents-per-km method at 91 cents per business kilometre for 2026-27 (from 1 July 2026), capped at 5,000 km for a maximum of 5,000 x 0.91 = $4,550, or under the logbook method with no cap. Where you claim depends on whether you are an employee or an ABN contractor, and community and agency nurses with large caseloads often pass the 5,000 km cap by August, which makes the logbook method the better choice.

Starting the ATO 12-Week Logbook Mid-Year: Why July Is the Time

The Australian financial year restarted on 1 July 2026, and that is the moment to start a 12-week logbook if your work driving might exceed 5,000 kilometres. Without a valid logbook, your car-expense deduction is capped at the cents-per-km method's 5,000 km x 91c = $4,550 maximum for 2026-27, with no fallback for the kilometres above the cap. Starting the 12-week log in July, while the new year is fresh, is the difference between claiming your full car costs and leaving thousands of deductible kilometres unclaimed.

Track your business mileage automatically.

TruMile supports ATO rates with the right tier, cap, and unit logic. Free for 40 auto trips a month.

Download free on the App Store