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 |
|
Electric |
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.
