ATO Cents Per Kilometre Rate 2021-22 (Australia)

MyCarTracks_support · May 8, 2026, 7:20am

The ATO cents per kilometre rate for the 2021-22 income year was 72 cents per kilometre for eligible work-related car expense claims. The ATO myTax 2022 work-related car expenses instructions also set out the 5,000 business kilometre cap, the need to show how you worked out kilometres, and the rule that covered running costs cannot be added again.

Use this page when you are fixing a 2021-22 tax record, checking an old kilometre-based employer payment, or rebuilding a mileage tracking report for trips from 1 July 2021 to 30 June 2022. For current claims, use the current ATO rate instead.

This article is educational and is not tax, legal, payroll, employment, or financial advice. Older car expense claims can depend on the income year, vehicle, ownership, reimbursement history, business structure, and records available. Check the official source and a qualified professional before relying on an older calculation.

Quick answer

For the 2021-22 income year, the ATO cents per kilometre rate was 72 cents per kilometre. The method applied to eligible work-related or business kilometres for a car, up to 5,000 kilometres per car. The rate already included running costs such as decline in value, registration, insurance, maintenance, repairs, and fuel, so those costs were not added again under the cents per kilometre method.

2021-22 ATO cents per kilometre rates

Income year	Trip dates	Rate
2021-22	1 July 2021 to 30 June 2022	72 cents/km

The ATO software developer rate notice for 2020 says the 72 cent rate applied from the income year starting 1 July 2020 and that there was no change for 2021-22. The later 2022 determination notice also confirms the 2020-21 and 2021-22 rates were both 72 cents per kilometre before the rate increased to 78 cents from 1 July 2022.

Which trips belong to 2021-22?

Use the date of the trip, not the date you are doing the paperwork. A trip on 30 June 2022 belongs to 2021-22 and uses 72 cents per kilometre. A trip on 1 July 2022 belongs to 2022-23 and uses the next income year’s rate.

If your mileage tracking export runs across June and July, split the report by income year before calculating the claim or reviewing a payment.

How to calculate a 2021-22 cents per kilometre claim

Use this formula:

eligible work-related kilometres x 72 cents = deduction amount

Example: 3,200 eligible work-related kilometres in 2021-22 at 72 cents per kilometre equals $2,304.

The cents per kilometre method was capped at 5,000 business kilometres per car. If your records show more than 5,000 eligible kilometres for the car, the cents per kilometre method still capped the claim at 5,000 kilometres.

Who could use the 2021-22 rate?

For individual work-related car expenses, the rate applied where you were eligible to claim car expenses for your own car, leased car, or hire-purchase car and the travel was work-related.

For business motor vehicle expenses, the ATO cents per kilometre method is for sole traders and partnerships where at least one partner is an individual, and only for cars. Companies and trusts use actual costs. Motorcycles, trucks, minibuses, and vehicles outside the ATO car definition need different treatment.

What the 72 cent rate included

The 2021-22 rate was an all-in car expense rate. It included costs such as:

decline in value
registration
insurance
maintenance
repairs
fuel

Do not add those same running costs on top of a cents per kilometre calculation. If you need to claim actual car expenses by business-use percentage, compare the logbook method instead.

Records you should keep for an old 2021-22 file

The cents per kilometre method did not require receipts for each running cost, but that does not mean no records were needed. Keep records that show how the kilometres were worked out and why the trips were work-related.

A practical 2021-22 file can include:

trip dates
start and end locations
work purpose
kilometres for each trip or route
calendar, roster, appointment, invoice, or job support
vehicle ownership, lease, or hire-purchase support
calculation worksheet showing kilometres x 72 cents
notes separating 2021-22 trips from 2022-23 trips

Employee reimbursement is a separate question

The 72 cent rate is useful when checking kilometre-based payments, but it does not make every employer payment a tax-free reimbursement. A car allowance, a cents per kilometre car expense payment, an exact reimbursement, and a company car can each have different payroll, withholding, deduction, and fringe benefits tax treatment.

If you were paid by your employer for the same car expenses, check your income statement and the payment type before claiming a deduction. The ATO withholding for allowances table gives special rules for cents per kilometre car expense payments up to the approved rate and kilometre limit.

Alternatives if the cents per kilometre method was not enough

If the car had high running costs or more than 5,000 eligible kilometres, the logbook method may have been worth comparing. The logbook method uses actual car expenses and a business-use percentage, but it requires stronger records, including a valid logbook and odometer readings.

For companies, trusts, motorcycles, and vehicles that are not cars, do not force the 2021-22 cents per kilometre method onto the claim. Use the ATO method that matched the vehicle and structure.

How MyCarTracks helps with older rate checks

Older mileage files are hard to repair when the trip dates and purposes are missing. MyCarTracks automatic mileage tracking can keep trips tied to the correct date range, driver, vehicle, purpose, and distance for future tax or reimbursement work.

For teams, MyCarTracks fleet tracking can help managers review driver and vehicle activity before kilometre-based payments become a year-end reconstruction exercise.

Common mistakes to avoid

Using the current ATO rate for 2021-22 trips.
Mixing June 2022 and July 2022 trips in one calculation.
Claiming more than 5,000 kilometres per car under the cents per kilometre method.
Adding fuel, insurance, registration, repairs, maintenance, or decline in value on top of the 72 cent rate.
Treating a car allowance and an exact reimbursement as the same payment.
Using the car cents per kilometre method for a motorcycle, truck, minibus, company, or trust.
Keeping a total kilometre estimate without trip-date or work-purpose support.

FAQ

What was the ATO cents per kilometre rate for 2021-22?

The ATO cents per kilometre rate for 2021-22 was 72 cents per kilometre.

Was the 2020-21 rate also 72 cents per kilometre?

Yes. ATO rate references list 72 cents per kilometre for both 2020-21 and 2021-22.

What rate applied after 2021-22?

For 2022-23, the cents per kilometre rate increased to 78 cents per kilometre.

How many kilometres could you claim in 2021-22?

The cents per kilometre method capped the claim at 5,000 business kilometres per car.

Did you need receipts for fuel and registration?

Not for those running costs under the cents per kilometre method, because the rate already included them. You still needed records that showed how you worked out the work-related kilometres.

Could an employer use the 2021-22 ATO rate for reimbursement?

An employer could use a cents per kilometre rate for car expense payments, but the tax, withholding, award, agreement, policy, and FBT treatment needed separate checks. Do not treat the ATO deduction rate as the whole reimbursement answer.

Where to go next

Historical ATO Cents Per Kilometre Rates (Australia) for a full table of older rates
Current ATO Cents Per Kilometre Rate (Australia) for current-year claims
Cents Per Kilometre Method (Australia) for method eligibility and records
Logbook Method (Australia) when actual car expenses may give a better result
Mileage Reimbursement for Employees (Australia) if an employer payment is involved