Updated for 2026–27
Cents per kilometre: 91c per km
The ATO rate for 2026–27 is 91 cents per kilometre — an 89 cent base plus a one-off 2 cent uplift — capped at 5,000 business kilometres per car.
Work out your cents-per-kilometre deduction
Every forgotten trip is money left unclaimed. Odo records each drive for you automatically →
Uses the ATO cents per kilometre rate for 2026–27: 91c per km, capped at 5,000 business km per car per year.
Cents per kilometre vs the logbook method
The cents-per-km method needs no receipts, but it stops at 5,000 km — worth $4,550.00 at this year's rate. If you drive more than that for work, the logbook method usually gives a larger deduction, but it requires a valid 12-week logbook and records of actual expenses.
You still need to be able to show how you worked out your business kilometres, even under the simpler method. If you're weighing up the switch, see how the ATO logbook method works. Not sure which trips count, or whether your ute or novated-lease car qualifies at all? See work-related car expenses.
Cents per km rates by year
Lodging late, or amending an earlier return? Use the rate for the income year the trips were made in, not this year's:
| Income year | Rate per km | Maximum deduction (5,000 km) |
|---|---|---|
| 2026–27 | 91c | $4,550.00 |
| 2024–25 and 2025–26 | 88c | $4,400.00 |
| 2023–24 | 85c | $4,250.00 |
| 2022–23 | 78c | $3,900.00 |
| 2020–21 and 2021–22 | 72c | $3,600.00 |
The financial year runs 1 July to 30 June, so "cents per km 2025" usually means the 2024–25 or 2025–26 return — both use 88c. Rates for earlier years are on the ATO's prior-year tax return pages.
Stop reconstructing your kilometres from memory
Odo logs your drives automatically in the background, you swipe each one business or personal, and it totals your deduction at the ATO's 2026–27 cents-per-km rate — with a CSV your tax agent can use.