ATO cents-per-kilometre calculator
Work out your car deduction under the ATO cents-per-kilometre method. For locum healthcare professionals claiming car expenses.
ATO rate
88 cents per business kilometre, capped at 5,000 km per vehicle per income year (2025-26 and 2026-27).
Quick distances
Claimable car deduction
$0.00
How the cents-per-km method works
The cents-per-kilometre method lets you claim a flat rate for every business kilometre travelled in your car, up to 5,000 km per vehicle per income year. The rate is set each year by an ATO legislative determination and is 88 cents/km for both 2025-26 and 2026-27. The income year runs from 1 July to 30 June. The rate covers all running costs: fuel, registration, insurance, servicing, and depreciation.
What counts as a business km for locums?
As a locum, travel between workplaces on the same day is generally deductible, as is travel directly to a client or workplace when you are carrying bulky equipment you cannot leave on site. Normal home-to-workplace commuting is not deductible. If you have a home office that is your base of work, trips from there to a workplace may qualify: check your position with your accountant.
Records you need to keep
The ATO expects you to be able to substantiate the business kilometres claimed. For each trip, record:
- Date of the trip
- Destination (workplace or site name)
- Kilometres travelled
- Purpose of the trip
Track all your car kilometres in one place
Sessional logs car trips at the ATO rate automatically. Attach notes, export for your tax return.
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Frequently asked questions
Can I use the cents-per-km method as a locum?
Yes, if you are a sole trader or claiming car expenses against your personal tax return, and you have not travelled more than 5,000 business kilometres in the income year. The method is the simpler of the two available methods. If you drive more than 5,000 business km, the logbook method is usually a better option because there is no cap and the deductible amount scales with actual usage.
What's the 2025-26 and 2026-27 cents-per-km rate?
The ATO set the cents-per-kilometre rate at 88 cents per business kilometre for both 2025-26 and 2026-27. The rate is set each year by an ATO legislative determination. You can claim up to 5,000 business km per vehicle per income year under this method.
What is the 5,000 km cap?
The cents-per-km method is capped at 5,000 business kilometres per vehicle per income year. Any business kilometres above that are not claimable under this method. If you expect to do more than 5,000 business km, start a logbook at the beginning of the income year and claim actual expenses in proportion to the logbook business-use percentage.
Do I need a logbook for the cents-per-km method?
No logbook is required, but the ATO expects you to be able to show how you worked out the business kilometres you claimed. Keep a simple record of each business trip: the date, the start and end locations, the purpose of the trip, and the kilometres travelled. A diary note or a shift record is usually enough.