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.

Free ATO Car Expenses Calculator (2025-26)

Enter your business kilometres for the financial year (1 July to 30 June). The calculator applies the 88-cent rate, 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.

Track your business mileage automatically.

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

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