Only use this method if you are a sole trader or partnership (where at least one partner is an individual) claiming for a car.
On this page:
- This method
- How you use this 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 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.
How you use this method
To work out how much you can claim, multiply the total business kilometres you travelled by the rate.
Things to remember:
- Apportion for private and business use
- Understand the expenses you can claim
- Keep the right records.
For more information and advice contact us on 1300 QUINNS (784 667) or 02 9223 9166 to arrange an appointment or submit an online enquiry.