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Wear And Tear Cost Formula:
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The Wear And Tear Cost Per Km Calculator estimates vehicle operating costs based on distance traveled and the Australian Taxation Office (ATO) prescribed rate. It helps individuals and businesses calculate deductible vehicle expenses for tax purposes.
The calculator uses the simple formula:
Where:
Explanation: The calculation multiplies the distance traveled by the current ATO rate to determine the deductible vehicle expense amount.
Details: Accurate calculation of vehicle wear and tear costs is essential for proper tax deduction claims, business expense tracking, and financial planning for vehicle maintenance and replacement.
Tips: Enter the distance traveled in kilometers and the applicable ATO rate (default is $0.88/km for 2025/26). All values must be valid (distance > 0, rate ≥ 0).
Q1: What is the current ATO rate for vehicle expenses?
A: The ATO rate for 2025/26 is $0.88 per kilometer for cars. This rate may change annually.
Q2: What expenses does this rate cover?
A: The ATO rate covers all vehicle operating costs including fuel, oil, maintenance, repairs, registration, insurance, and depreciation.
Q3: Are there limits to how many kilometers I can claim?
A: The cents-per-km method has a maximum of 5,000 business kilometers per vehicle per year without needing written evidence.
Q4: Can I use a different rate if my actual costs are higher?
A: If your actual costs are higher, you may need to use the logbook method instead of the cents-per-km method for tax deductions.
Q5: Is this calculator applicable for all vehicle types?
A: The ATO provides different rates for different vehicle types. This calculator uses the standard car rate - check ATO guidelines for motorcycles, trucks, and other vehicles.