Hello Chasers,
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, diary records); and
- uses a rate that takes all vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.
NOTE: The cents per kilometre rate was previously 72 cents for the 2021 and 2022 income years.
If you want to maximise your motor vehicle expense claims for 2023 please contact our experienced Team on 55612643 and start planning your tax reduction strategies early.
Have a great day!
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