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Working for families payments 22nd June 2021 Your working for families payment may be in your bank account later than usual today. You will still receive your payment by the end of the day.

End of tax year We’re sending income tax assessments out from late-May until the end of July. If you have a tax bill you may be eligible for an automatic write off. Find out more

Use the following rates to calculate the allowable expense for using your vehicle for business purposes for the 2019-2020 income year.

As we rely on third-party information that was delayed due to COVID-19, we were previously unable to provide these rates and advised businesses to use the kilometre rates for the 2018-2019 income year instead.

If you filed your 2020 income tax return using the 2018-2019 income year kilometre rates, you can contact us to request a reassessment of your return that will take into account these finalised kilometre rates.

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Kilometre rates for the 2018-2019 income year

Using the Tier 1 and Tier 2 rates

The Tier 1 rate is a combination of your vehicle's fixed and running costs. Use the Tier 1 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 2 rate is for running costs only. Use the Tier 2 rate for the business portion of any travel over 14,000 kilometres in a year. 

Using Tier 1 and 2 rates for employee reimbursement

If you're an employer, you can use Tier 1 and Tier 2 kilometre rates to get a reasonable estimate of costs. These will help when reimbursing an employee who has business-related use of the vehicle.

Your employee will need a record showing their business-related use of the vehicle over the income year, such as a logbook. You then use it to calculate the exempt portion of reimbursement using the kilometre rates we've set. For example, use the Tier 1 rate for the business portion of the first 14,000 kilometres (total) travelled by the vehicle in the income year, and then the Tier 2 rates after that.

Vehicle type Tier 1 rate per km Tier 2 rate per km
Petrol or diesel 82 cents 28 cents
Petrol hybrid 82 cents 17 cents
Electric 82 cents 9 cents