Claiming Car Expenses - Set Rate per Kilometre Method

(last updated 27/03/2014)

Related Posts:
This method of claiming car expenses is by far the most common way we claim for car expenses. Althought it sometimes results in claiming less than may be possible if records were kept, it is easy to calculate and no receipts or records are required.

 For details and a checklist on other methods of claiming car expenses see these posts:
You can use this method to claim up to a maximum of 5,000 business kilometres per car per year, even if you have travelled more than 5,000 business kilometres. For example, if you travelled 5,085 business kilometres, you can only claim the cost of travelling 5,000 kilometres with this method. You cannot claim for the extra 85 kilometres.

As mentioned, you do not need written evidence but you may need to be able to show how you estimated your business kilometres.

A typical example is where a trades person transports bulky tools and equipment to a work site.

Rates for the 2014 financial year:



Rates per business kilometre

Engine capacity
Cents per kilometre
Ordinary engine
Rotary engine

1.6 litre (1,600cc) or less
0.8 litre (800cc) or less
65 cents
1.601-2.6 litre (1,601-2,600cc)
0.801-1.3 litre (801-1,300cc)
76 cents
2.601 litre (2,601cc) and over
1.301 litre (1,301cc) and over
77 cents

 

Rates for the 2013 financial year: 



Rates per business kilometre

Engine capacity
Cents per kilometre
Ordinary engine
Rotary engine

1.6 litre (1,600cc) or less
0.8 litre (800cc) or less
63 cents
1.601-2.6 litre (1,601-2,600cc)
0.801-1.3 litre (801-1,300cc)
74 cents
2.601 litre (2,601cc) and over
1.301 litre (1,301cc) and over
75 cents


FREE fact sheet on claiming car expenses ==> Claiming a Deduction for Car Expenses.

If you receive an allowance from your employer for car expenses it must be included as assessable income. See this post for a checklist of eTax and Assessable Income.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:
For help with your eTax return see our eTax Return Checklist.

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