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Use the rates listed below to calculate the allowable expense for using your vehicle for business purposes for the 2018-2019 income year.

Using the Tier One and Tier Two rates

The Tier One rate is a combination of your vehicle's fixed and running costs. Use the Tier One rate for the business portion of the first 14,000 kilometres travelled by the vehicle in a year. This includes private use travel.

The Tier Two rate is for running costs only. Use the Tier Two rate for the business portion of any travel over 14,000 kms in a year. 

Vehicle Type Tier One Rate Tier Two rate
Petrol or Diesel 79 cents 30 cents
Petrol Hybrid 79 cents 19 cents
Electric 79 cents 9 cents