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ATO Cents Per Kilometre Rate 2026-27: 90c/km Prediction

Q: Has the ATO announced the 2026-27 mileage rate?

No. As of May 10, 2026, DriveLog has not found a published ATO mileage rate 2026-27. The current official 2025-26 rate remains 88 cents per kilometre.

Q: Why predict 90c/km?

The prediction is based on the current 88 cents per kilometre baseline, broader vehicle running cost pressure, and the 2026 fuel-price shock. A 2 cent increase would be a modest adjustment.

Q: Would 90c/km change the maximum claim?

Yes. At 90 cents per kilometre, the maximum cents per kilometre claim for 5,000 work-related kilometres would be $4,500. At 88 cents per kilometre, the same 5,000 kilometres is $4,400.

Q: Should high-mileage drivers use the logbook method instead?

Possibly. If you drive more than 5,000 work-related kilometres or your actual car costs are high, the logbook method may produce a better result, provided you keep the required records.

May 10, 2026 • 9 min read

Illustration of a car, fuel pump, tax checklist, and calculator for the ATO mileage rate 2026-27 prediction

Status checked May 10, 2026: the ATO has not published its 2026-27 cents per kilometre rate yet. Some searchers call this the ATO mileage rate, but the Australian tax wording is cents per kilometre. The current official 2025-26 rate is 88 cents per kilometre. DriveLog predicts the 2026-27 rate will increase to 90 cents per kilometre, given fuel-price volatility and broader car running cost pressure.

Quick Answer: ATO Cents Per Kilometre Rate 2026-27 Prediction

DriveLog predicts the ATO cents per kilometre rate 2026-27 will move to 90c per km.

That is a prediction, not an official ATO rate.

The official baseline is still:

2025-26 ATO cents per kilometre rate: 88c per km
ATO cents per kilometre rate 2026-27 DriveLog prediction: 90c per km
Maximum cents per kilometre claim if 90c is adopted: $4,500 for 5,000 work-related km
Maximum at the current 88c rate: $4,400 for 5,000 work-related km

The key distinction is that 88c/km is the current official 2025-26 rate, while the 2026-27 rate has not been published yet.

Start tracking your work kilometres with DriveLog so your records are clean if the 2026-27 rate changes.

Why We Predict 90c/km

A move from 88c to 90c would be modest: just 2 cents per work-related kilometre. For a driver claiming the full 5,000 km under the cents per kilometre method, that difference is $100.

We predict 90c/km for three reasons.

First, 88c/km is already the current official baseline for 2025-26. If the ATO updates the rate for 2026-27, a small increase would be easier to justify than a large reset.

Second, the cost environment for car use has become harder to ignore. The cents per kilometre method is intended to cover car running costs in a simplified way. Fuel, servicing, insurance, registration, maintenance, and decline in value all matter to the practical cost of work-related driving.

Third, the 2026 fuel crisis has made fuel volatility visible to ordinary drivers, employers, and small businesses. Even though temporary fuel relief may lower bowser prices for a period, the fact that the government and ACCC had to intervene shows how unstable the running-cost picture has become.

Fuel alone does not set the rate. Our call is that 90c/km is the right next adjustment in the current environment.

How the 2026 Fuel Crisis Supports the Case

The fuel crisis is useful context, but it needs to be handled carefully.

In April 2026, the Australian Government announced temporary fuel relief. The Department of Infrastructure said the fuel excise paid per litre was reduced from 52.6c to 20.6c from April 1 for three months, with fuel expected to be about 32c per litre plus GST cheaper at the bowser. The heavy vehicle road user charge was also reduced to zero for the same three-month period.

The ACCC also warned fuel retailers to pass on excise cuts quickly and said it was monitoring fuel prices daily across capital cities and more than 190 regional locations. Its April 2, 2026 release also noted volatile benchmark prices and concerns about fuel surcharges.

Illustration of a fuel pump, car, rising cost chart, and tax checklist for Australian mileage rate pressure

That does not mean the ATO will automatically increase the cents per kilometre rate. The ATO sets tax guidance separately.

But it supports the broader argument that work-related driving costs are under pressure. If fuel markets are volatile enough to trigger temporary relief and daily monitoring, the case for 90c/km is strong.

What If the ATO Leaves the Rate at 88c/km?

That is still possible.

If the ATO leaves the rate at 88c/km for 2026-27, the practical advice does not change much:

keep recording work-related kilometres
keep personal and work trips separate
make sure each work trip has enough context to explain why it was work-related
compare cents per kilometre with the logbook method if your costs or business driving are high

The cents per kilometre method is simple, but it is capped. If you drive more than 5,000 work-related kilometres per car, or if fuel and total running costs are unusually high, the logbook method may be worth reviewing.

88c vs 90c: Example Calculations

Here is what the difference looks like in real numbers.

Work-related km	At 88c/km	At 90c/km	Difference
1,000 km	$880	$900	$20
3,000 km	$2,640	$2,700	$60
5,000 km	$4,400	$4,500	$100

Illustration of a phone route, mileage logbook, receipts, calculator, and fuel marker for comparing ATO car expense methods

The headline rate matters, but the bigger issue is record quality. A 90c rate does not help if you cannot show how you worked out your work-related kilometres.

Records You Still Need for Cents Per Kilometre

Under the ATO’s cents per kilometre method, you do not need to keep every fuel receipt for the cents per kilometre calculation itself. The rate already accounts for car running costs.

You do still need a record that shows how you worked out your work-related kilometres.

A practical record should include:

date of the trip
start and end points or route context
purpose of the trip
kilometres travelled
whether the trip was work-related or private

This is where many claims become weak. The issue is usually not the arithmetic. It is the ability to explain the work-related kilometres months later.

Cents Per Kilometre vs Logbook Method in 2026-27

If the ATO rate rises to 90c/km, the cents per kilometre method becomes slightly more valuable. But the 5,000 km cap still matters.

The cents per kilometre method is usually attractive when:

you want a simpler claim
your work-related driving is below 5,000 km per car
you do not want to track every car expense
your records can support a reasonable work-kilometre estimate

The logbook method may be worth considering when:

you drive well above 5,000 work-related km
fuel, servicing, finance, insurance, or depreciation costs are high
your business-use percentage is strong
you are willing to keep a representative logbook and expense records

If fuel costs stay volatile through 2026, the logbook method may become more attractive for some high-use drivers. For lower-volume drivers, cents per kilometre may still be the cleaner option.

For a deeper setup guide, see our ATO logbook method guide.

How DriveLog Helps With a 2026-27 ATO Mileage Claim

Whether the 2026-27 ATO cents per kilometre rate stays at 88c/km or increases to our predicted 90c/km, the rate only matters if your work kilometres are defensible.

DriveLog helps Australian drivers keep cleaner records by:

capturing work trips as they happen
separating business and personal kilometres
keeping dates, distances, and trip purpose notes in one place
reducing the need to rebuild records from memory at tax time
making it easier to compare cents per kilometre with the logbook method

For the cents per kilometre method, you do not need fuel receipts for every trip, but you do need to show how you worked out your work-related kilometres. A simple, consistent trip record is the safer habit.

If fuel costs keep moving around in 2026, DriveLog also helps you see when the logbook method may be worth considering instead of the capped cents per kilometre method.

Track your work kilometres with DriveLog

Sources Checked

Core sources checked on May 10, 2026:

FAQ: ATO Mileage Rate 2026-27

Has the ATO announced the 2026-27 mileage rate?

No. As of May 10, 2026, we have not found a published ATO mileage rate 2026-27. The current official 2025-26 rate remains 88c/km.

What is DriveLog’s 2026-27 prediction?

DriveLog predicts the 2026-27 ATO cents per kilometre rate will increase to 90c/km. This is a forecast, not an official ATO figure.

Why predict 90c/km?

The prediction is based on the current 88c/km baseline, broader vehicle running cost pressure, and the 2026 fuel-price shock. A 2c increase would be a modest adjustment.

Would 90c/km change the maximum claim?

Yes. At 90c/km, the maximum cents per kilometre claim for 5,000 work-related kilometres would be $4,500. At 88c/km, the same 5,000 km is $4,400.

Do I still need records if I use cents per kilometre?

Yes. You do not need fuel receipts for every trip under the cents per kilometre calculation, but you need records showing how you worked out your work-related kilometres.

Should high-mileage drivers use the logbook method instead?

Possibly. If you drive more than 5,000 work-related km or your actual car costs are high, the logbook method may produce a better result, provided you keep the required records.