ATO updates ‘cents per kilometre’ rate for individuals

The ATO has updated the cents per kilometre rate relating to individual car expenses for the 2023 income year to 78 cents per business kilometre.

The cents per kilometre method:

• uses a set rate for each kilometre travelled for business;
• allows taxpayers to claim a maximum of 5,000 business kilometres per car, per year;
• does not require written evidence to show exactly how many kilometres were travelled (but the ATO may ask taxpayers to show how they worked out their business kilometres, for example by means of diary records); and
• uses a rate that takes all vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.

The cents per kilometre rate was 72 cents for the 2021 and 2022 income years.

Are You Ready for Tax Time?

With these tax tips for individuals, you now have a better understanding of how to do tax.

So gather your tax time documents and receipts, give some serious thought to the 4 steps above and book an appointment with a Modoras Accountant or call us on 1300 888 803. Tax time has never been so exciting because with planning… your lifestyle potential is just the beginning.

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From tax tips, checklists, fact sheets and more, click here to take a look at the Modoras Tax Time Strategies page.

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