# Cents 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, this claim method can still be used, but the excess over 5,000 is ignored.

# Per kilometre – multiple claimants, multiple cars, joint owners

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 used at different times.  For a useful explanation of joint and same-car claims – see this article from Bantacs Accountants “Claiming a motor vehicle” (PDF)

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.

News Proposed 66 cents flat rate from 1 July 2015 – Budget 2015: The government has announced its intention to apply one flat rate of 66 cents per business kilometre for the cents/km claim method – regardless of engine size – to be applicable from 1 July 2015. An exposure draft of the new rules is here.

The updated per Km rates are usually released with an updated regulation once a year, towards the latter part of the applicable financial year.

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 – 2014-15

 Per Km Claim Rates For 2014-15 Engine Capacity Non-Rotary Rotary Rate Per Km 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 – 2013-14

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

.