What is the cents per kilometre method?
The cents per kilometre method is one of four methods set out in the law for calculating deductions for car expenses. It gives taxpayers a simple means to calculate their deduction. You can use this method to claim up to a maximum of 5,000 business kilometres per car even if you have travelled more than 5,000 business kilometres. For example, if you travelled 5,085 business kilometres, you can only claim the cost of travelling 5,000 kilometres with this method. You cannot claim for the extra 85 kilometres. You don’t need written evidence but you may need to be able to show how you worked out your business kilometres. The cents per kilometre rate is determined each year by the Department of Education, Employment and Workplace Relations (DEEWR) based on movements in the consumer price index (CPI) for private motoring. The new rates are generally published in June to allow taxpayers to make an informed decision about whether they wish to use the cents per kilometre method or one of the ot
