The cents per kilometre method can be used:
- by sole traders and partnerships (if at least one partner is an individual)
- when the motor vehicle is a car.
Under the cents per kilometre method:
- you can claim a maximum of 5,000 business kilometres per car
- you do not need written evidence to show how many kilometres you have travelled, but we may ask you to show how you worked out your business kilometres (such as, calendar or diary records)
- the rate covers your running expenses and depreciation – this means you can’t make a separate claim for depreciation of the car’s value.
If you use the cents per kilometre method, your claim is based on a set rate for each business kilometre travelled. The rates are reviewed each year.
The rate increased to 68 cents per kilometre from the 2018–19 income year.