Cents per Kilometre Deduction Rate for Car Expenses 2023 Determination

The cents per kilometre deduction rate for motor vehicle expenses is now 85 cents per kilometre, commencing 1 July 2023.

This 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.

For the 2022-23 income year the rate was 78 cents per kilometre.

For the 2020-21 and 2021-22 income years the rate was 72 cents per kilometre.