Car Deduction Rates

Car Rates

Car Rates 2017/18

One rate of 66c per km for all cars.

Cents per Kilometre method

You can use this method to claim up to a maximum of 5,000 work kilometres, even if you have travelled more than 5,000 work kilometres. For example, even if you have travelled 5,085 work kilometres, you can't claim for the extra 85 kilometres. When working out your deduction using the cents per kilometre method, you do not need receipts or other written evidence. However, we may ask you how you worked out your estimate of work kilometres. For example, by:

  • Using a diary of work-related travel 
  • Basing your costs on a regular pattern of travel 

Example: Regular Pattern of Travel 

Rudy travels five kilometres each day while carrying out work-related activities. He worked Monday to Friday for 48 weeks during the income year. It would be reasonable for Rudy to calculate his work kilometres in the following way:

 5 (km) × 5 (days) × 48 (weeks) = 1,200 work kilometres

Example: Diary Notation 

Henry works on building sites. From his diary notes of appointments during the income year, he calculates that he has travelled 4,825 kilometres for work-related activities. Although he does not have an established pattern of travel, his diary notes form a reasonable basis for his calculation. For more information please visit the ATO Website https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Deductions-for-specific-industries-and-occupations/Building-and-construction-employees--work-related-expenses/?page=2


 

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