MilesheetAustralia · ATO cents per kilometre method
Mileage rates in Australia
The cents per kilometre method is capped at 5,000 business kilometres per car per income year. 91 cents applies for 2026-27: an 89 cent base with a one-off 2 cent uplift.
What applies now
| Band | Rate |
|---|---|
| Every kilometre | 91 cents |
| Most you can claim in a year | 5,000 kilometres |
How a claim is worked out
Take 5,000 kilometres of business travel in Australia. The bands apply in order, so each one is charged at its own rate rather than the whole distance at the top rate.
| Band | Distance | Rate | Amount |
|---|---|---|---|
| Every kilometre | 5,000 | 91 cents | $4,550.00 |
| Total | $4,550.00 | ||
What it used to be
Rates in Australia, newest first. Use the row that covers the date you drove, not the one in force today: an amended return is worked out at the rate that applied at the time.
| Period | Applies | Rate |
|---|---|---|
| 2026-27 Now | Since 1 Jul 2026 | 91 cents |
| 2024-25 and 2025-26 | 1 Jul 2024 to 30 Jun 2026 | 88 cents |
| 2023-24 | 1 Jul 2023 to 30 Jun 2024 | 85 cents |
| 2022-23 | 1 Jul 2022 to 30 Jun 2023 | 78 cents |
| 2020-21 and 2021-22 | 1 Jul 2020 to 30 Jun 2022 | 72 cents |
- 2026-27 An 89 cent base with a one-off 2 cent uplift.
Where these figures come from
- Cents per kilometre methodThe rate, the 5,000 km cap, and what the rate covers.
- Cents per kilometre deduction rate determinationThe instrument that sets the rate for the income year.
- Expenses for a car you own or leaseCents per kilometre against the logbook method.
Rates move. If yours has and this page has not, the other countries are here.