Case Studies
Adjusting Your Returns: What the New 91¢/km Car Rate Means for Remote and Hybrid Workers
The ATO raised the cents per kilometre rate to 91 cents/km from 1 July 2026—here’s how remote- and hybrid-based employees and gig workers can apply it for maximum benefit.
By NomadicTax Research Team • 5-7 min read • August 14, 2026
## Context and What’s Changed
From **1 July 2026**, the ATO’s cents per kilometre rate for work-related car deductions moves to **91 cents per kilometre**, a **temporary uplift** from the base **89¢** engaged by previous determinations. This change applies for the full **2026-27 income year**, using the cents per kilometre method. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/CentsperKilometreDeductionRateforCarExpenses?utm_source=openai))
## Who It Affects
- **Remote workers** traveling between home and alternate work locations (if deductible under ATO rules).
- **Hybrid workers** doing varied work sites where travel is integral to role (not commuting.
- **Gig workers**, rideshare, delivery drivers where own vehicle travel is central to supply of services—provided the ATO method applies.
- Not suitable for those who keep detailed logbooks—logbook method may still yield higher deductions depending on actual use and expenses.
## How To Use the New Rate Properly
1. **Ensure you satisfy eligible travel**: must be work-related travel, excluding ordinary commute. For remote/hybrid roles, check whether travel between home and workplace qualifies under ATO guidance.
2. **Election to use the cents per kilometre method**: you pick this method (no need for logbook) but cap is **5,000 km per year**.
3. **Record keeping**:
- Must record **number of km travelled**, date, purpose each trip.
- Keep evidence (e.g. odometer, maps) in case ATO requests support.
## Example Scenarios
**Remote Consultant Sarah** travels to clients, 4 times/week, average trip 20 km. Over financial year she accumulates 4,800 km. Under new rate she claims: 4,800 * $0.91 = **AUD $4,368**, instead of at older rate $4,272.
**Hybrid Worker Tom** has some days in office, some remote. He must discriminate between commuting (non-deductible) and valid travel. If his valid travel is 3,000 km, new rate yields **$2,730 deduction**.
## Strategic Tips
- **Compare methods**: Logbook method might yield more if vehicle expenses, depreciation, insurance are high. Always estimate both.
- **Keep clear travel logs**: As hybrid schedules shift, maintaining a clear travel diary helps if audited.
- **Plan in advance**: If expecting high travel early in the financial year, consider timing of travel where possible to make full use of the 5,000 km cap.
## Conclusion
The rise to **91¢/km** isn’t massive but represents real savings if you have substantial eligible travel under the cents per kilometre method. For remote or gig-roles, it's especially relevant. Estimate carefully, document properly, and choose the deduction method that maximises your return under the new rate.