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.
Year-over-year rates
2026-27: 91¢ per km, capped at 5,000 km (maximum deduction $4,550). Effective from 1 July 2026.
2025-26: 88¢ per km, capped at 5,000 km.
2024-25: 85¢ per km, capped at 5,000 km.
2023-24: 78¢ per km, capped at 5,000 km.
Rate effective from the start of each financial year (1 July).
Why the cap has not moved
The 5,000 km cap was set as a simplicity threshold rather than a cost ceiling. The ATO's view is that drivers exceeding 5,000 business km per year should reasonably be able to maintain a 12-week logbook, which is what the logbook method requires. Reviewing the cap would conflict with that simplification rationale.
FAQ
What is the rate for 2026-27?
The 2026-27 cents-per-km rate is 91 cents per kilometre, effective from 1 July 2026. The 5,000 km cap and maximum deduction of $4,550 per car apply for the full 2026-27 financial year (1 July 2026 to 30 June 2027).
Has the cap ever changed?
Not in recent memory. The 5,000 km cap has been the standard for decades, predating the cents-per-km rate's recent step-ups.
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