# ATO: car expense rate now 68 cents per kilometre from 2018-19 income year (up from 66 cents)



## Jack Malarkey (Jan 11, 2016)

*From the Australian Taxation Office's Small Business Newsroom:*

*New rate for car expenses*










*31 August 2018*

The rate for work-related car expenses has increased for the income year starting 1 July 2018. It is now 68 cents per kilometre.

This applies if you have chosen to use the cents per kilometre method for calculating work-related car expenses and will remain in place until the Commissioner decides it should be varied.

...

Remember, registered tax agents and BAS agents can help you with your tax.

(https://www.ato.gov.au/Newsroom/smallbusiness/General/New-rate-for-car-expenses/?sbnews20180912)

Jack Malarkey comments:

The cents per kilometre method applies for income tax purposes and is limited to 5,000 business kilometres. It is an alternative to the log book method.

The new rate applies only to car expenses incurred from 1 July 2018 onwards. The earlier rate was 66 cents per kilometre.

See https://www.ato.gov.au/business/inc...ming-motor-vehicle-expenses-as-a-sole-trader/.


----------

