Glossary · Last reviewed 28 Oct 2026
What is the cents per kilometre method?
Short answer
An ATO method for car expenses: business kilometres (up to 5,000 per car a year) multiplied by a set rate for the income year.
Source: ATO, cents per kilometre method · ATO, motor vehicle expense calculation methods · checked 28 Oct 2026
Who can use it
Only sole traders and partnerships (where at least one partner is an individual) claiming for a car. The rate already takes running costs and depreciation into account.
Related terms
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