UPDATED AUG 4, 2020 • 2 MIN READ
If you have a tax return or mileage reimbursement claim from a previous financial year, it’s important to know that the ATO updated the cents per kilometre rates for the 2020/2021 financial year. This means that the current rate of $0.72 per km will not apply, and you will instead need to use the rate for the relevant financial year. If you’re in a rush, you can scroll further down to see all prior years' rates. Otherwise, here’s a quick refresher on the cents per km rate:
Each year, the ATO issues the standard car expense deduction rate for the coming year. The rates cover the cost of using your personal vehicle for work-related purposes.
If you want to know more, we have written a quick guide for employees on mileage reimbursement, as well as mileage tax deductions for self-employed and business owners.
Be aware that the standard cents per km rate is optional — your employer may use different rates.
Between July 1st, 2019, and June 30, 2020, the cents per km rate was:
Absolutely! One thing to keep in mind - the current setup of one standard rate for work-related car expenses was implemented for the 2015/2016 financial year. Prior to that, the rate would vary based on the size and the type of engine your car had. For detail, just see the tables below.
| Financial Year | Cents per KM rate |
|---|---|
| 2020/21 | 72 |
| 2019/20 | 68 |
| 2018/19 | 68 |
| 2017/18 | 66 |
| 2016/17 | 66 |
| 2015/14 | 66 |
| Financial Year | Non-rotary engine rate | Rotary engine rate | Cents per KM rate |
|---|---|---|---|
| 2014/15 |
Up to 1,600cc |
Up to 800cc |
65 |
| 2013/14 |
Up to 1,600cc |
Up to 800cc |
65 |
| 2012/13 |
Up to 1,600cc |
Up to 800cc |
63 |
| 2011/12 |
Up to 1,600cc |
Up to 800cc |
63 |
| 2010/11 |
Up to 1,600cc |
Up to 800cc |
63 |
| 2009/10 |
Up to 1,600cc |
Up to 800cc |
63 |
| 2008/09 |
Up to 1,600cc |
Up to 800cc |
63 |
To determine next year's rate, the ATO looks at the average costs of owning (fixed costs) and operating (variable costs) a vehicle in a year. In short, the rate for business use is based on the average cost of ownership plus the average operating costs of a car.
That’s it for our guide to historic cents per km rates set by the ATO!
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This material has been prepared for general informational purposes only, and should not be taken as professional advice from Driversnote. You should consider seeking independent legal, taxation, or financial advice from a professional to check how this information relates to your own circumstances. Relevant laws also change from time to time.
