2020 kilometre rates confirmed

By December 23, 2020 No Comments

Section DE 12(4) requires the Commissioner to annually set and publish motor vehicle kilometre rates, which can then be used by taxpayers to calculate expenditure claims for the business use of a motor vehicle, or alternatively used by employers as a reasonable estimate for reimbursement of expenditure incurred by employees for the use of a private motor vehicle for business purposes.

The rates to be used for the 2019/20 year are:

Vehicle type 

Tier One rate 

Tier Two rate 

 Petrol or diesel

 82 cents

 28 cents

 Petrol hybrid

 82 cents

 17 cents


 82 cents

 9 cents

The increase in tier one reflects a slight increase in vehicle ownership costs, whereas the reductions in tier two are in essence tied to reductions in fuel costs.

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