Guide
ATO cents per km rate 2026-27: 91c and how to claim it
General information, not tax advice. Always check the current rules on ato.gov.au or with a registered tax agent.
From 1 July 2026, the ATO's cents per kilometre rate for work-related car expenses rises to 91 cents per kilometre for the 2026-27 income year: a base rate of 89 cents plus a one-off 2-cent uplift for this year. It had been 88 cents for the previous two income years. The method is capped at 5,000 work kilometres per car per year, making the maximum claim $4,550.
The rates at a glance
| Income year | Rate | Maximum claim (5,000 km cap) |
|---|---|---|
| 2026-27 | 91c / km | $4,550 |
| 2025-26 | 88c / km | $4,400 |
| 2024-25 | 88c / km | $4,400 |
A worked example
You drove 3,600 work kilometres in 2026-27: 3,600 × $0.91 = $3,276 deductible. No receipts for fuel, rego or servicing needed, the rate covers all running costs.
Work out your deduction
Enter your business kilometres and pick the income year.
No receipts, but you must show how you got your kilometres
The cents per kilometre method doesn't require written evidence of car costs, but the ATO does require you to be able to show how you worked out your work kilometres: a diary of work trips, or records of your travel pattern. "I reckon about 4,900 km" does not survive a review; a dated record of actual trips does.
If Google Maps Timeline was on during the year, it already holds that diary: every drive with its date, time and distance. To turn it into evidence:
- Export your Timeline from your phone (see the Timeline export guide).
- Open the file in Time-mile: your Timeline file is read in your browser and never uploaded.
- Filter to the income year (1 July – 30 June) and your work trips by date and activity type.
- Export a CSV to total your work kilometres, or a PDF report as your supporting record.
Driving more than 5,000 work km? Consider the logbook method
Beyond the cap, the logbook method usually gives a bigger deduction: you claim the work-use percentage of your actual car expenses, based on a representative 12-week logbook (valid for five years). The law asks for each trip to be recorded at the end of the journey or as soon as possible afterwards, so a logbook cannot be rebuilt later from a past Timeline export: it has to be kept while the 12 weeks run.
Time-mile can keep that logbook for you. Choose the ATO scheme in the app, open a logbook with your odometer reading, then once a week import a fresh Timeline export and confirm that week's journeys with their purpose. Each record carries the date it was made, odometer readings are chained from your real one, and the PDF lists the period totals and your work-use percentage, ready to keep for five years. The logbook comes with the subscription for the income year in progress.
Keep your ATO logbook from your Timeline
Import your Google Timeline each week for the year in progress, or once for a closed year, and export a dated record.
Launch Time-mileOfficial sources
- ATO: Cents per kilometre method
- ATO: Cents per kilometre deduction rate determinations
- ATO: Logbook method
The full dated history of these figures, each read at the authority that published it: ATO cents per kilometre rates on lexrates.
Frequently asked questions
What is the ATO cents per kilometre rate for 2026-27?
From 1 July 2026, the ATO cents per kilometre rate rises to 91 cents per kilometre for the 2026-27 income year: a base rate of 89 cents plus a one-off 2-cent uplift. It had been 88 cents for the previous two income years.
How many kilometres can I claim under the cents per kilometre method?
The method is capped at 5,000 work kilometres per car per year. At the 91-cent rate for 2026-27, that makes the maximum claim $4,550.
Do I need receipts to claim the cents per kilometre method?
No, the rate covers all running costs like fuel, rego and servicing, so you do not need receipts for car expenses. But you must be able to show how you worked out your work kilometres, such as a diary of work trips or records of your travel pattern.
Can I use my Google Maps Timeline as a mileage record for the ATO?
Yes. If you use Google Maps, your Timeline has captured every drive with GPS timestamps and distances. Export it, open it in Time-mile in your browser, filter to the income year and your work trips, and export a CSV or PDF report as your supporting record.
What if I drive more than 5,000 work kilometres?
Beyond the 5,000 km cap the logbook method usually gives a bigger deduction: you claim the work-use percentage of your actual car expenses, based on a representative 12-week logbook that stays valid for five years.