NEW ATO CENTS PER KM RATE FOR 2021

Photo: Flickr/ 401(K) 2012

The Australian Taxation Office (ATO) allows people to claim the use of their car for work as a tax deduction. The rates are reviewed regularly and there is a NEW rate for the 2021 and 2022 tax years. The rate is:

 

72 cents per km for 2020–21 and 2021–22

 

The ATO allows people to claim up to 5,000km using the cents per km method at the rate of 72 cents per km.

 

The cents per km method is the simplest way to claim your work related car use from the ATO.

 

  • You can claim a maximum of 5,000 business kilometres annually.
  • Your claim is limited to a set rate, which is 72 cents per kilometre for the 2021 income year.
  • You DO need to keep records to prove that you used your vehicle for work for the number of km claimed.
  • You DON’T need to keep all the individual fuel receipts, insurance receipts, car servicing receipts etc.
  • But, you can’t claim separate deductions for insurance premiums, depreciation and fuel etc.

 

The cents per km method is simple and great for those doing less than 5,000km of work travel per year. 

 

If you are doing more than 5,000km per year for work purposes you may want to check out the logbook method. The logbook method requires more record keeping BUT allows you to claim unlimited km for work purposes.

 

Learn more about how GOFAR can jump in and save the day. Or get GOFAR today to maximise your car expenses and save hours on your mileage logging. Treat yourself to a turnaround of your mileage logging fortunes.

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