This method
Only use this method if you are a sole trader or partnership (where at least one partner is an individual) claiming for a car.
The cents per kilometre method:
- uses a set rate for each kilometre travelled for business
- allows you to claim a maximum of 5,000 business kilometres per car, per year
- doesn't require written evidence to show exactly how many kilometres you travelled (but we may ask you to show how you worked out your business kilometres, for example diary records)
- uses a rate that takes all your vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.
Rates
Rates are reviewed regularly. The rate is:
- 88 cents per kilometre for 2024–25
- 85 cents per kilometre for 2023–24
- 78 cents per kilometre for 2022–23
- 72 cents per kilometre for 2020–21 and 2021–22
- 68 cents per kilometre for 2018–19 and 2019–20
- 66 cents per kilometre for 2017–18.
How you use this method
To work out how much you can claim, multiply the total business kilometres you travelled by the rate.
You also need to apportion for private and business use, understand the expenses you can claim and keep the right records.