Whether you’re reimbursing a worker or claiming a car deduction, work out the cents-per-kilometre amount — and where the ATO’s 5,000 km deduction cap kicks in.
You’ve travelled over 5,000 business km. The ATO cents-per-km method caps the deduction at 5,000 km — to claim the rest you generally need the logbook method. Employer reimbursements can still cover all the kilometres.
traqR records the jobs your team visits, giving you the trail behind business travel claims and reimbursements. Try it free for 14 days.
Start free trialAdd up work-related travel — between jobs, to suppliers, to clients. Your regular commute from home to a fixed workplace generally doesn’t count.
Multiply the kilometres by the cents-per-km rate. The ATO sets a standard rate (88c for 2024–25); employers may reimburse at their own agreed rate.
For a tax deduction under the cents-per-km method, the ATO caps the claim at 5,000 business km per car per year. Beyond that you need a logbook to claim more.
It’s a set rate the ATO allows for claiming work-related car expenses without keeping detailed receipts. For the 2024–25 income year it’s 88 cents per kilometre, covering running costs like fuel, servicing and depreciation. The rate is reviewed each year, so confirm the current figure with the ATO.
Yes. Under the cents-per-km method you can claim a maximum of 5,000 business kilometres per car, per year, as a tax deduction. If you travel more than that for work, you generally need to use the logbook method to claim the full amount based on your actual business-use percentage.
A reimbursement is money an employer pays an employee for using their own car for work — often at the ATO rate, and there’s no 5,000 km cap on what an employer can reimburse. A deduction is what a business or sole trader claims on their own tax return, where the cents-per-km method is capped at 5,000 km. This tool shows both.
Yes. Even under the cents-per-km method you need to be able to show how you worked out your business kilometres — a diary, job records or a reasonable estimate based on your travel pattern. For the logbook method you need a valid 12-week logbook. Good job records make this far easier.
This calculator is a general estimate, not tax advice. The ATO rate, the 5,000 km cap and the rules for reimbursements and deductions can change and depend on your circumstances. Confirm the current rate and method with the ATO and your accountant.
traqR records the jobs your team visits, so the kilometres behind reimbursements and claims are backed by real records. Try it free for 14 days.