Cents per kilometre method
A simpler car claim — a set rate per business km, capped.
The cents-per-kilometre method lets you claim a flat rate for each business kilometre you drive, up to a yearly cap of 5,000 business kilometres per car. The rate is meant to cover all running costs, so you can’t also claim fuel or servicing separately. No logbook needed, but you must be able to show how you worked out the kilometres.
Worked example
Drive 3,000 business kilometres and you claim 3,000 × the set rate — one line, no receipts for fuel. Drive 12,000 business kilometres and the 5,000 km cap starts costing you, which is when a logbook usually wins.
Common mistake
Assuming “no logbook” means “no records”. You still need a reasonable basis for the kilometres — a diary or app trail — if the ATO asks.
Grounded in ATO guidance. Figures last checked . General information, not tax advice.
Related terms
Logbook method (car expenses)
Claim your car’s real business-use share of running costs.
Substantiation (proving a deduction)
The records that turn a claim into a defensible deduction.
Sole trader
The simplest business structure — you and the business are one.
Depreciation (decline in value)
Claiming the cost of a big asset gradually over its life.
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