Income tax Dates
AUG 28Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.
OCT 28Provisional tax payments are due if you have a March balance date and use the ratio option.
JAN 15Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.
Use the rates listed below to calculate the allowable expense for using your vehicle for business purposes from the 2019-2020 income year onwards.
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.
Using Tier One and Two rates for employee reimbursement
If you're an employer, you can use Tier One and Tier Two 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 One rate for the business portion of the first 14,000 kms (total) travelled by the vehicle in the income year, and then the Tier Two rates after that.
Kilometre rates for business use of vehicles 2019-2020
We rely on third-party information to set the kilometre rates. Due to COVID-19 (novel coronavirus), we cannot review the present rates. Use the 2018-2019 kilometre rates for the time being.
We will review the rates once we get the information from our third party. You can file your tax returns and if there is a change once we do set the new rates, you may adjust your 2020 motor vehicle expense claims.
Until these rates are reviewed, employers may continue to use the 2018-2019 rates as an estimate of expenditure for employees' business use of private motor vehicles.