The Untracked KM Problem — Trax by Rounded
Rounded
Trax — PR Data Story
Campaign data story

Australia's sole traders are leaving real money on the road

The ATO lets sole traders claim 88 cents for every work kilometre driven. Most don't track them properly — or at all. Here's what that actually costs.

88¢
ATO rate per km, 2025–26
5,000
Max claimable kms per year
$1,126
Tax saving at 4,000 km/yr — 32% effective rate

Interactive calculator

How much are sole traders leaving unclaimed?

Work kilometres per year 4,000 km
≈ 77 km per week · ATO caps the cents-per-km method at 5,000 km/yr
Annual income $80,000
Capped at $135,000 — upper limit of the 32% effective rate bracket (30% income tax + 2% Medicare levy)
Percentage of kms tracked 0%
Most sole traders track far less than they actually drive for work
Deduction if fully tracked
$3,520
4,000 km × 88¢ ATO rate
Deduction currently being claimed
$0
0% of work kms recorded
Tax saving being lost
$1,126
at 32% effective tax rate
Estimated fuel cost
~$508
8L/100km avg consumption · 158.9 c/L Melbourne avg (current)
vs
Full tax saving if claimed
$1,126
at 32% effective rate
2.2×
tax saving vs
fuel bill
4,000 km × 88¢ = $3,520 deduction → unclaimed portion × 32% effective rate = $1,126 cash lost to the ATO

Modelling the collective impact

How many sole traders aren't claiming?

Rounded modelled four non-claiming rate assumptions across Australia's 900,000 mobile sole traders. Select a scenario to see what it means for the total unclaimed figure — the per-person saving updates live from the km and income settings in the calculator above.

Non-claimers
540,000
60% of 900,000
×
Per-person tax saving
$1,126
4,000 km × 88¢ × 32%
=
Collective unclaimed
~$608M
in tax deductions left on the road
Per-person saving reflects the full ATO deduction at the selected km and income settings — non-claimers are modelled as claiming nothing. The $253M–$608M range in Rounded's press release uses the base case of 4,000 km at a 32% effective tax rate (30% income tax + 2% Medicare levy).

The national picture

1.5M
Estimated sole traders in Australia, including non-GST-registered ABN holders
ABS & ASBFEO, 2025
~900K
Mobile sole traders who drive for work (60% of total) — tradies, healthcare workers, consultants and more
Rounded estimate, based on occupational profile
~$608M
Collective unclaimed tax deductions — based on the selected non-claiming scenario above
Rounded modelling — updates with scenario selection

What this means

Every year, Australia's 900,000 mobile sole traders drive to client meetings, job sites, and supplier visits — and most never write down a single kilometre. The ATO will pay them 88 cents for every one of those kilometres, up to 5,000 a year. No receipts required. They just need a record.

A tradie driving 4,000 work kilometres a year who tracks nothing is handing back roughly $1,126 in tax savings. A consultant on $110,000 doing 2,500 kms loses around $704. Across the sole trader economy, the aggregate figure runs to hundreds of millions of dollars — Rounded's modelling puts the upper bound at $608 million.

"The 30-second habit saving Australian tradies more than $1,000 a year at tax time"

Trax from Rounded solves this with automatic tracking — no hardware, no manual entry, no excuses. It uses Bluetooth, CarPlay or Android Auto to know when you're driving, logs the full GPS route automatically, and produces an ATO-compliant logbook without a single tap.