New rate for Car Expenses

31 August 2018

The rate for work-related car expenses has increased for the income year starting 1 July 2018. It is now 68 cents per kilometre.

This applies if you have chosen to use the cents per kilometre method for calculating work-related car expenses and will remain in place until the Commissioner decides it should be varied.

If you are paying your employees a car allowance in excess of 68 cents per kilometre, you need to withhold tax on the amount you pay over 68 cents.

For more information https://www.ato.gov.au/Newsroom/smallbusiness/General/New-rate-for-car-expenses/?sbnews20180912

Remember, CATS4TAX is a registered tax agent and BAS agent – we can help you with your tax.

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