motor-vehicle-cents-per-kilometreCents Per Kilometre Car Expenses Substantiation Method

Cents Per Km is one of the four methods generally available to satisfy the substantiation rules for individuals claiming car expenses as a tax deduction. Under this method, substantiation of the actual car expenses isn’t needed.

The claim is based on a per kilometre allowance for up to 5,000 business kilometres a year in total. Business kilometres are those travelled by car in the course of producing assessable income, or between work places.

If more than 5,000 business kms was involved, the excess over 5,000 is ignored under this method.

More than one car can be included in a claim for a financial year, and more than one person can conceivably make a claim in respect of the same vehicle, provided the total claims don’t exceed 5,000 kms.

This claim method doesn’t prescribe specific record-keeping requirements, but the claim has to be ‘reasonable’, and you need to be able to show some logical basis for the kilometres figure derived. The claim is made out by first selecting the applicable Rate per Km, and then multiplying that by the number of kilometres (up to 5,000):

$Claim = Rate (cents) x Kms

Motor vehicle cents per kilometre rates – 2013-14

Per Km Claim Rates For 2013-14
Engine Capacity  Rate Per Km

 Non-Rotary

Rotary
Up to 1,600cc Up to 800cc 65 cents
1,601 to 2,600cc 801 to 1,300cc< 76 cents
Over 2,600cc Over 1,300cc 77 cents

 

Motor vehicle cents per kilometre rates – 2012-13

Per Km Claim Rates For 2012-13
(unchanged from previous years)
Engine Capacity  Rate Per Km
Non-Rotary Rotary
Up to 1,600cc Up to 800cc 63 cents
1,601 to 2,600cc 801 to 1,300cc 74 cents
Over 2,600cc Over 1,300cc 75 cents

 

Prior years’ (2012 & earlier) rates are the same..

Per Km Claims
For 2008-9 and 2009-10 and 2010-11 and 2011-12

Engine Capacity  Rate Per Km
Non-Rotary Rotary
Up to 1,600cc Up to 800cc 63 cents
1,601 to 2,600cc 801 to 1,300cc 74 cents
Over 2,600cc Over 1,300cc 75 cents

The cents per kilometre claim rates are set by Regulation

 

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This page was last modified on 25 March 2014