Cents per Kilometre Method
Quick definition
Australia's simplest mileage deduction method. A flat per-km rate up to 5,000 km per year.
The cents per kilometre method is the Australian Tax Office's simplest mileage deduction approach. A flat per-kilometre rate (set annually by the ATO) multiplied by your business kilometres, capped at 5,000 km per year per vehicle.
How it compares to logbook
The ATO offers two methods: cents per kilometre (simpler, capped) and the logbook method (more work, no cap). Drivers under 5,000 business km usually pick cents per kilometre. Drivers above the cap have to use the logbook method to claim more. See the comparison.
What the rate covers
Like the US standard mileage rate, the Australian cents-per-km figure is meant to cover all vehicle operating costs: fuel, oil, registration, insurance, depreciation, and routine maintenance. You cannot also deduct those costs separately.
Documentation requirements
Less paperwork than logbook method. You still need to be able to substantiate the kilometres claimed (a calendar of trips, calculation methodology). See ATO log requirements.
Related terms
Logbook Method
Keeping a 12-week sample log to establish business-use percentage. Used by CRA in Canada and ATO in Australia.
Standard Mileage Rate
The IRS-published per-mile deduction amount. 72.5 cents per business mile for 2026.
AMAP
HMRC's UK mileage rates for employees. 45p/mile for the first 10,000 miles, 25p/mile after.
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