Free Calculator • 88¢ per km

Mileage Calculator Australia

Calculate work-related car expense deductions using ATO rates

Track business kilometres and calculate your tax deductions using the ATO's cents per kilometre method. Save common trips for faster logging.

How to Use This Calculator

Log Your Trips

  • Enter trip date and kilometres
  • Specify business purpose
  • Use saved common trips for speed

Review Deductions

  • See total kilometres and deduction
  • Check against 5,000km annual limit
  • View trip history and patterns

How to Use This Calculator

Enter Your Trip Details

  • • Distance per trip (one-way or return)
  • • Number of trips you made
  • • Calculator uses current ATO rate ($0.88/km)
  • • Automatically warns if exceeding 5,000km cap

Get Your Deduction

  • • Instant calculation of total deduction
  • • Breakdown by total kilometers
  • • ATO compliance warnings if needed
  • • Ready to use in your tax return

Enter the distance of a single trip

How many times did you make this trip?

📋 ATO Mileage 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 Mileage 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 mileage tracker automatically records all this information and calculates your deductions in real-time, saving you hours during tax time.

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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 (88 cents per km for 2025-26) that covers all car running costs including fuel, maintenance, insurance, and depreciation.

2025-26 Rate: 88 cents per kilometre

Maximum claim: 5,000 business kilometres per car, per year

No logbook required! You only need to show how you calculated your business kilometres (such as diary entries, calendar appointments, or reasonable estimates based on work patterns).

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.

Real-World Examples (2025-26 Rates)

Example 1: Contractor Site Visits

Sarah is a contractor who visits client sites 3 times per week. Each round trip is 40km (office → client → office).

  • • Annual business km: 40km × 3 days × 48 weeks = 5,760 km
  • • Claimable (capped at 5,000 km): 5,000 km
  • • Tax deduction: 5,000 km × $0.88 = $4,400

Example 2: Landlord Property Inspections

John owns 2 rental properties and inspects them monthly. Each property is 25km from home (round trip 50km total per inspection day).

  • • Annual business km: 50km × 12 months = 600 km
  • • Tax deduction: 600 km × $0.88 = $528

Example 3: Real Estate Agent Client Meetings

Emma drives to client showings and property appraisals daily, averaging 80km per day.

  • • Annual business km: 80km × 5 days × 48 weeks = 19,200 km
  • • Claimable (capped at 5,000 km): 5,000 km
  • • Tax deduction: 5,000 km × $0.88 = $4,400
  • 💡 Emma should consider the logbook method for higher deductions (can claim actual costs without 5,000 km cap)

Cents Per KM vs. Logbook Method

FeatureCents Per KMLogbook Method
Rate88¢/km (2025-26)Actual costs × business %
Limit5,000 km/yearNo limit
Logbook required?NoYes (12 weeks)
Receipts needed?NoYes (all car expenses)
Best for<5,000 km/year>5,000 km/year
Max deduction$4,400 (5,000 × $0.88)Based on actual costs

When to switch: If you drive more than 5,000 business kilometres per year or have high car costs (new car, expensive fuel, tolls), the logbook method usually gives a bigger deduction.

Record Keeping Tips

✅ 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

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.

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Important Disclaimer

This calculator provides estimates based on the ATO cents per kilometre method. Actual deductions depend on your specific circumstances and business use percentage. You must be able to demonstrate that trips were work-related. Always consult a registered tax agent for personalized advice.

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