From 1 July 2026, the cents per kilometre rate for calculating motor vehicle expenses is 91 cents per kilometre. This change will apply for the 2026–27 income year. This figure is the base cents per kilometre rate of 89 cents with a temporary one-off uplift of 2 cents per kilometre for the 2026–27 income year. For future income years, the calculated annual indexation rate will be applied to the 2026–27 base cents per kilometre rate of 89 cents.
The rate applies to all eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work-related car expenses.
This rate will apply until a new determination is made.
For more information, refer to the Federal Register of Legislation – Income Tax Assessment (Cents per Kilometre Deduction Rate for Car Expenses) Determination 2026.
For prior year rates, see Cents per kilometre method.