Tax rule Australia
The cents per kilometre method: 91 cents per km, up to 5,000 km
A car's expenses can be claimed at a set rate for each business kilometre, up to 5,000 km a year, in place of the receipts. What the ATO says, and how Bilbx's Tax Lab claims it.
The rate
91 cents per km
Checked against the ATO's own pages on . This is the figure Bilbx uses.
How much can you claim for each business kilometre with the cents per kilometre method?
The cents per kilometre method claims a set rate for each work-related kilometre travelled, for a maximum of 5,000 kilometres per car.
What the ATO says
“allows you to claim a set rate for each work-related kilometre you travel”
“a maximum of 5,000 work-related kilometres per car”
The rate is 88 cents per kilometre for 2024–25 and 2025–26.
What the ATO says
“2024–25 and 2025–26: use 88 cents per kilometre”
For the income year starting 1 July 2026, the rate is 91 cents per kilometre.
What the ATO says
“From 1 July 2026, the cents per kilometre rate for calculating motor vehicle expenses is 91 cents per kilometre.”
The rate covers all of the car's expenses, including decline in value, registration, insurance, maintenance, repairs and fuel, and none of them can be added on top of it.
What the ATO says
“The rate per km covers all of your car expenses including decline in value, registration and insurance, maintenance, repairs and fuel costs.”
“You can't add these, or any other car expenses, on top of the rate when calculating your deduction.”
Parking fees and tolls paid when the car is used for work are a deduction of their own, as are public transport fares.
What the ATO says
“You can claim a deduction for parking fees and tolls you incur when you use your car or other vehicle for work-related purposes.”
How does Bilbx apply this rule?
- Tax Lab claims the business kilometres you give for an Australian return's year at 91 cents per km, up to 5,000 km.
- Your Vehicle & Transport receipts then come out of the expenses claimed, listed as covered by the rate, with their GST still claimable. Any you mark as parking or tolls stay claimed.
What does this look like in practice?
Bilbx's own tests run these exact cases against the website and the app.
| Tax year starting | Business km | Tax Lab claims |
|---|---|---|
| 1 July 2026 | 4,000 km at 91 cents per km | $3,640 |
| 1 July 2026 | 6,000 km, capped at 5,000, at 91 cents per km | $4,550 |
| 1 July 2025 | 5,000 km at 88 cents per km | $4,400 |
| 1 July 2025 | 3,000 km at 88 cents per km | $2,640 |