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ATO updates ‘cents per kilometre’ rate for individuals

Corporate Photo Web Version 600x600Ewan Van Zyl
Published by:
Ewan Van Zyl
Published on:
July 05, 2022
Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521
MOD2022ATO updates ‘cents per kilometre’ rate for individuals blog banner_07-11

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.

Want to know more?

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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IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (SYD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (SYD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (SYD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (SYD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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