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

Cents Per Km is one of the methods you can choose to satisfy the substantiation rules for individuals claiming car expenses as a tax deduction.

Under this method, full substantiation (e.g. receipts for expenses) isn’t needed, however there must exist an objectively reasonable basis of facts to enable a claim.

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 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.

Per kilometre rates – 2019-20

Any change to the ATO cents per kilometre rate to apply for 2020 (2019-20 from 1 July 2019) will be published here when available.

Motor vehicle cents per kilometre rates – 2018-19

Motor vehicle cents per kilometre rate from 1 July 2018 is 68 cents per km (MVE 2018/1)

Motor vehicle cents per kilometre rates – 2017-18

Motor vehicle cents per kilometre rate from 1 July 2017 for the 2017-18 year remains unchanged at 66 cents per km

Motor vehicle cents per kilometre rates – 2016-17

Motor vehicle cents per kilometre rate from 1 July 2016 for the 2016-17 year remains unchanged at 66 cents per km

Motor vehicle cents per kilometre rates – 2015-16

Per Km rate for 2015-16 is 66 cents per km regardless of engine size

Applicable from 1 July 2015 a single flat rate per business kilometre will be used for the cents/km claim method – regardless of engine size. The amending legislation is here. The rates set in future years will be intended to more closely reflect the actual operating cost of cars.

The single flat rate will be 66 cents per kilometre (up to 5,000 kms) for the 2015-16 year.

Updated per Km rates are usually released with an updated regulation once a year, towards the latter part of the 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-RotaryRotaryRate Per Km
Up to 1,600ccUp to 800cc65 cents
1,601 to 2,600cc801 to 1,300cc76 cents
Over 2,600ccOver 1,300cc77 cents

 

Motor vehicle cents per kilometre rates – 2013-14

Per Km Claim Rates For 2013-14
Engine Capacity
Non-RotaryRotaryRate Per Km
Up to 1,600ccUp to 800cc65 cents
1,601 to 2,600cc801 to 1,300cc76 cents
Over 2,600ccOver 1,300cc77 cents

 

Motor vehicle cents per kilometre rates – 2012-13

Per Km Claim Rates For 2012-13
(unchanged from previous years)
Engine Capacity
Non-RotaryRotaryRate Per Km
Up to 1,600ccUp to 800cc63 cents
1,601 to 2,600cc801 to 1,300cc74 cents
Over 2,600ccOver 1,300cc75 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-RotaryRotaryRate Per Km
Up to 1,600ccUp to 800cc63 cents
1,601 to 2,600cc801 to 1,300cc74 cents
Over 2,600ccOver 1,300cc75 cents

 

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This page was last modified 2018-07-18