As part of the new income year, the rate for work-related car expenses has increased to 68 cents per kilometre as of July 1.
Under the cents per kilometre method:
- you can claim a maximum of 5,000 business kilometres per car
- you do not need written evidence to show how many kilometres you have travelled, but you may be asked to show how you worked out your business kilometres
- you cannot make a separate claim for depreciation of the car’s value
- this amount takes into account all your vehicle running expenses.
To work out how much you can claim, multiply the total business kilometres (maximum 5,000) you travelled by 68 cents.
This applies if you have chosen to use the cents per kilometre method for calculating work-related car expenses and will remain in place until the Commissioner decides it should be varied.
If you are working out your car expenses for the 2015–16 year, 2016–17 year and the 2017–18 year, the previous rate of 66 cents per kilometres still applies.
Remember, registered tax agents and BAS agents can help you and your fleet with your tax to help take the guesswork out of your financial obligations.
