Unclaimed work-trip deductions could reach $608 million
Kilometre tracking failures could leave Australia’s 1.7 million sole traders missing up to $608 million a year in tax savings, according to new analysis from Melbourne software group Rounded released on Friday 31 July 2026.
About 900,000 mobile sole traders can claim work-related driving deductions, yet Rounded’s modelling suggests as many as 540,000 claim little or nothing.
For the 2025/26 financial year, a sole trader who drives 4,000 work kilometres could miss about $1,126 in tax savings under the ATO rate.
From 1 July 2026, the ATO lifted the cents-per-kilometre rate to 91 cents. As a result, the same 4,000-kilometre total equals a $3,640 deduction and about $1,165 in tax savings for 2026/27.
Ahead of Financial Awareness Day on Friday 31 July 2026, Rounded ranked six financial habits by how well they survive a real working week rather than by willpower alone.
Automatic kilometre tracking ranked first on the list. Automated tax set-asides, real-time expense capture and automated invoicing reminders also scored well because they remove human decision-making.
Rounded concluded that the main issue for self-employed workers is consistency across a full financial year while they manage client work and business operations.
Co-founder Oliver Garside said the gap is about consistency rather than knowledge. “The problem is that knowing what to do and actually doing it, every week, for an entire financial year, are two completely different things,” he said.
Trax app for iOS
To target the kilometre tracking gap, Rounded launched Trax for iOS. The app uses a vehicle’s Bluetooth or CarPlay connection to detect and log work-related trips without manual input from the driver.
Rounded plans an Android version next. The company argues that automation beats manual logging and delayed expense entry because it does not rely on ongoing discipline.
Co-founder Grant McCall said many rival products still require an action from the driver, while Trax was designed so the driver does nothing.
Last updated: 4 August 2026, 10:33 am
