The ‘cents per kilometre’ rate change has been implemented by the ATO for individual car expenses for the 2023 income year, from 72 cents to 78 cents per business kilometre.
The cents per kilometre method:
- uses a set rate for each kilometre travelled for business
- allows taxpayers to claim a maximum of 5,000 business kilometres per car, per year
- does not require written evidence to show exactly how many kilometres were travelled (but the ATO may ask taxpayers to show how they worked out their business kilometres, for example by means of diary records)
- uses a rate that takes all vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.
The cents per kilometre rate was 72 cents for the 2021 and 2022 income years and has now increased to 78 cents per business kilometre.
If you have any questions or require any assistance with claiming your individual car expenses, tax deductions, tax return preparation or tax planning, please contact our team on 03 9708 8801 or email firstname.lastname@example.org for further information.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.