Cents per Kilometre Deduction Rate for Car Expenses 2024 Determination

From 1 July 2024, the cents per kilometre rate for calculating motor vehicle expenses is 88 cents per kilometre. This change will apply for the 2024–25 income year and remain effective for the 2025–26 income year. 

The rate applies to all eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work-related car expenses.

This rate will apply until a new determination is made.

For more information, refer to the Federal Register of Legislation - Income Tax Assessment (Cents per Kilometre Deduction Rate for Car Expenses) Determination 2024.

For prior year rates, see Cents per kilometre method.