# ATO increases to 72 cents the cents per kilometre rate for 2020-21 income year



## Jack Malarkey (Jan 11, 2016)

https://www.ato.gov.au/Business/Inc...-vehicle-expenses/Cents-per-kilometre-method/
Australian Taxation Office:

*This method*

The cents per kilometre method:


uses a set rate for each kilometre travelled for business
allows you to claim a maximum of 5,000 business kilometres per car, per year
doesn't require written evidence to show exactly how many kilometres you travelled (but we may ask you to show how you worked out your business kilometres, for example diary records)
uses a rate that takes all your vehicle running expenses (including registration, fuel, servicing and insurance) and depreciation into account.
*Rates*

Rates are reviewed regularly. The rate is:


72 cents per km for 2020-21
68 cents per km for 2018-19 and 2019-20
66 cents per km for 2017-18, 2016-17 and 2015-16.


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## JorY (Nov 12, 2019)

I'm afraid that this method is not suitable for regular uber drivers, as 100km daily is easy. ATO should allow rideshare drivers to claim the actual mileage. By following the regular depreciation scheme, drivers will probably find they can not afford to replace their vehicles.


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## Jack Malarkey (Jan 11, 2016)

JorY said:


> I'm afraid that this method is not suitable for regular uber drivers, as 100km daily is easy. ATO should allow rideshare drivers to claim the actual mileage. By following the regular depreciation scheme, drivers will probably find they can not afford to replace their vehicles.


The United States has no limit on the number of business miles for which can be claimed the rate of 57.5 cents per mile (from 1 January 2020):

https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2020
I can't see Australia introducing a similarly generous system as the US system typically overstates the relevant costs.


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## DEvok (Jun 17, 2019)

Can u claim on rental?


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## Jack Malarkey (Jan 11, 2016)

DEvok said:


> Can u claim on rental?


Yes. (Note, however, that intermittent hire car expenses aren't subject to the car expenses substantiation rules but long-term hire car expenses are.)

Australian Taxation Office:

*Car expenses*

If you use your own car in performing your work-related duties (including a car you lease or hire under a hire-purchase agreement), you may be able to claim a deduction for car expenses using either the cents per kilometre or logbook method.

(https://www.ato.gov.au/individuals/...aim/vehicle-and-travel-expenses/car-expenses/)

Legislation:

*INCOME TAX ASSESSMENT ACT 1997 - SECT 28-12*

*Car expenses*

(1) If you owned or leased a * car, you can deduct for the car's expenses an amount or amounts worked out using one of 2 methods.

Note 1: For particular types of cars taken on hire you cannot use one of the 2 methods: see section 28-165.
Note 2: In certain circumstances the lessee of a luxury car is taken to be its owner (seesubsection 242-15(2)).
Note 3: In certain circumstances (for example, under a hire purchase agreement) the notional buyer of property is taken to be its owner (see subsection 240-20(2)).
(2) You must use one of the 2 methods unless an exception applies. If you can't use either of the methods, you can't deduct anything for the * car expenses.

(http://classic.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s28.12.html)


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