Cents Per KM Calculator & Uber Logbook
Track business trips and calculate vehicle tax deductions for Uber, delivery drivers, and contractors
Calculate your vehicle tax deductions at $0.88 per kilometre (2025-26 FY). Perfect for Uber, DoorDash, and delivery drivers who need to track mileage vs actual expenses. Simple, accurate, free.
📋 ATO Vehicle Deduction Rates 2025-26
- • $0.88/km for 2025-26 financial year
- • Covers all vehicle running costs
- • Maximum 5,000 km per vehicle
- • No log book required under 5,000 km
✅ What Trips Can I Claim?
- • Work-related travel (employees)
- • Property inspections (landlords)
- • Client meetings (contractors)
- • Business supply purchases
How the ATO Vehicle Deduction Works
The Australian Taxation Office (ATO) allows you to claim a tax deduction for business-related car travel using the cents per kilometre method. For the 2025-26 financial year, the rate is $0.88 per kilometre.
This method is ideal for landlords visiting rental properties, contractors meeting clients, and small business owners making work-related trips. You can claim up to 5,000 kilometres per vehicle without maintaining a log book.
What Records Do I Need to Keep?
While you don't need a log book for claims under 5,000 km, you should keep evidence of:
- Date of each trip
- Destination and purpose
- Distance travelled (can be estimated using Google Maps)
- Business reason for the trip
Pro tip:ReceiptClaimer's trip tracker automatically records all this information and calculates your deductions in real-time, saving you hours during tax time.
How to Use This Calculator
Log Your Trips
- Enter trip date and kilometres
- Specify business purpose
- Use saved common trips for speed
Calculate Deductions
- Automatic cents per km calculation ($0.88/km)
- Check against 5,000km annual limit
- Export ATO-compliant logbook
ATO Cents Per Kilometre Method Explained
The cents per kilometre method is the simplest way to claim car expenses for work-related travel. The ATO sets a fixed rate that covers all car running costs including fuel, maintenance, insurance, and depreciation.
This rate covers ALL car running costs — no need to track individual expenses
Key Requirements
- • Maximum claim: 5,000 business kilometres per car, per year
- • No logbook required (unlike the logbook method)
- • Must be able to show how you calculated your business kilometres (diary, calendar, GPS records)
- • Covers all car expenses (no additional claims for fuel, etc.)
- • Can use for multiple cars, but 5,000 km limit applies to each car
Why Use Cents Per Km?
- ✅ Simple: No receipts, no logbook, no calculations
- ✅ Fast: Just multiply km × $0.88
- ✅ Fair: Rate covers typical car running costs
- ✅ Flexible: Works for any car (new or old)
What Counts as Work-Related Travel?
✅ Claimable Work Travel
- • Client meetings and site visits
- • Traveling between two job sites
- • Delivering goods for work
- • Attending work-related conferences
- • Property inspections (landlords)
- • Bank runs for business
- • Collecting work supplies
❌ NOT Claimable Travel
- • Commuting home ↔ work
- • Driving to your usual workplace
- • Personal errands during work hours
- • Parking at your regular workplace
- • Travel paid/reimbursed by employer
- • Weekend personal trips
Special case: If you carry bulky equipment (tools, instruments) that can't be stored at work, you may claim home-to-work travel. Keep evidence of the equipment and why it can't be left at work.
Historical ATO Cents Per Km Rates
The ATO reviews this rate annually to account for changes in vehicle running costs. Here's how the rate has evolved:
| Financial Year | Rate | Max Deduction (5,000 km) |
|---|---|---|
| 2022-23 | 78¢ per km | $3,900 |
| 2023-24 | 85¢ per km | $4,250 |
| 2024-25 | 88¢ per km | $4,400 |
| 2025-26 (Current) | 88¢ per km | $4,400 |
Note: The 2025-26 rate of 88¢ per km is the same as 2024-25. The ATO reviews this rate annually based on vehicle running costs.
Real-World Examples (2025-26 Rates)
Example 1: Contractor Site Visits (3,200 km/year)
Sarah is a contractor who visits client sites 2 times per week. Each round trip is 32km (office → client → office).
- • Weekly business km: 32km × 2 days = 64 km
- • Annual business km: 64km × 50 weeks = 3,200 km
- ✓ Tax deduction: 3,200 km × $0.88 = $2,816
Why cents per km works: Under 5,000 km limit, no logbook required, simple record keeping
Example 2: Sales Representative (4,800 km/year)
Mark is a sales rep who drives to client meetings 4 days per week. Average round trip is 24km per meeting.
- • Weekly business km: 24km × 4 days = 96 km
- • Annual business km: 96km × 50 weeks = 4,800 km
- ✓ Tax deduction: 4,800 km × $0.88 = $4,224
Perfect fit: Just under 5,000 km cap, maximizes cents per km benefit
Example 3: Part-Time Consultant (1,500 km/year)
Lisa is a part-time consultant who meets clients once per week. Round trip is 30km per meeting.
- • Weekly business km: 30km × 1 day = 30 km
- • Annual business km: 30km × 50 weeks = 1,500 km
- ✓ Tax deduction: 1,500 km × $0.88 = $1,320
Simple & effective: Low km count makes cents per km the easiest choice
Example 4: High-Mileage User (8,000 km/year)
Emma drives to client showings and property appraisals daily, averaging 160km per week.
- • Annual business km: 160km × 50 weeks = 8,000 km
- • Claimable (capped at 5,000 km): 5,000 km
- • Cents per km deduction: 5,000 km × $0.88 = $4,400
💡 Consider logbook method:Emma's 3,000 km over the cap. With actual car costs of $12,000/year and 70% business use, logbook deduction = $8,400 (vs $4,400 cents per km). She'd gain $4,000 extra.
Cents Per KM vs. Car Logbook Method: Which is Better?
The ATO allows two methods for claiming car expenses. Here's how they compare:
| Feature | Cents Per KM | Logbook Method |
|---|---|---|
| Rate | 88¢/km (2025-26) | Actual costs × business % |
| Annual Limit | 5,000 km/year | No limit |
| Logbook required? | No | Yes (12 weeks) |
| Receipts needed? | No | Yes (all car expenses) |
| Simplicity | ⭐⭐⭐⭐⭐ Very easy | ⭐⭐ Complex |
| Best for | <5,000 km/year | >5,000 km/year |
| Max deduction | $4,400 (5,000 × $0.88) | Unlimited (based on actual costs) |
| Record keeping | Trip diary only | 12-week logbook + all receipts |
✅ Choose Cents Per Km If:
- • You drive less than 5,000 business km per year
- • You want simple record keeping (no logbook)
- • You don't want to track every fuel receipt
- • You drive an old car with low running costs
✅ Choose Logbook Method If:
- • You drive more than 5,000 business km per year
- • You have high car costs (new car, expensive fuel)
- • Your business use is over 70% of total driving
- • You're willing to keep detailed records for 12 weeks
ATO Logbook Requirements (If You Need One)
While the cents per km method doesn't require a full car logbook, understanding ATO logbook requirements helps you decide which method suits your situation best.
What is an ATO Car Logbook?
A car logbook is a detailed 12-week record of ALL your vehicle use (business and private). The ATO uses this to calculate your business-use percentage, which determines how much of your actual car expenses you can claim.
Key difference: Cents per km = simple trip diary. Car logbook = comprehensive 12-week tracking of ALL trips.
12-Week Logbook Requirements
For EVERY trip during the 12-week period, you must record:
- Date: When did the trip occur?
- Odometer start and end: Beginning and ending km readings
- Total kilometres: Distance traveled
- Trip purpose: Business or private (with reason if business)
- Destination: Where did you go?
How to Maintain a Car Logbook Australia
Paper Logbook
- • Buy ATO-approved logbook from stationery stores
- • Record every trip manually
- • Keep in car to avoid forgetting
- • Store safely for 5 years
Digital Logbook (Recommended)
- • GPS tracking apps (automatic km recording)
- • Timestamp verification
- • Cloud backup (can't lose records)
- • One-click export for accountant
Logbook Validity Period
- Initial logbook: Valid for 5 years (if car usage pattern similar)
- Update required if: Change jobs, get new car, or business use changes significantly
- Renewal: Complete new 12-week logbook every 5 years minimum
⚠️ Common Logbook Mistakes
- • Incomplete records: Missing dates or odometer readings = invalid
- • Recording only business trips: Must record ALL trips (ATO needs total km)
- • Estimating distances: Use actual odometer, not Google Maps
- • Not keeping for 5 years: ATO can audit anytime within 5 years
Do You Actually Need a Logbook?
🚗 Under 5,000km (Side Hustle / Casual)
NO logbook needed. Use the simple cents per km method. Just keep records of your trips (date, km, purpose). Perfect for occasional landlords or part-time contractors.
🚖 Over 5,000km (Uber / Delivery Professionals)
YES - You need a logbook to maximize deductions. If you drive for rideshare or delivery, you likely exceed 5,000km. The logbook method allows you to claim actual expenses (fuel, maintenance, depreciation) which often results in $10,000+ in deductions—far more than the $4,400 cap.
ReceiptClaimer helps you track those actual receipts while you maintain your 12-week logbook, ensuring you claim every dollar you're entitled to.
Record Keeping Tips for Cents Per Kilometre Method
Even though the cents per km method doesn't require a full logbook, you still need evidence to support your claim. Here's what the ATO expects:
✅ What You Need to Keep
- • Diary or calendar entries: Date, destination, business purpose
- • Odometer readings: Optional but helpful for accuracy
- • Business evidence: Client emails, meeting confirmations, invoices
- • Calculation method: How you estimated total business km
- • Reasonable estimate:Based on regular travel patterns (e.g., "visit 2 clients per week, 30km round trip each")
Pro tip:Use ReceiptClaimer's mileage tracking feature to automatically log trips with GPS, photos, and notes. Export a complete year-end summary for your tax return. For complex record keeping, see our Ultimate Guide to Audit Reconciliation.
Why Cents Per KM is Perfect for Contractors & Sole Traders
- ✅ No complex logbook: Just track trip dates and km
- ✅ No fuel receipts: $0.88/km covers all costs
- ✅ Quick calculations: Total km × $0.88 = your deduction
- ✅ Works for side hustles: Perfect for part-time work under 5,000 km