Skip to main content

Resurgence Support Payment (RSP) Businesses affected by the alert level increase that started on 17 August are able to apply for a Resurgence Support Payment. Find out more

COVID-19 - Our offices are currently closed for customer visits so we can support the government’s COVID response. We will contact you if you have already booked an appointment with us. You can still contact us and get help.    Contact us

Use the following rates to calculate the allowable expense for using your vehicle for business purposes for the 2020-2021 income year.

Tier 1 rates have reduced to reflect lower fuel, interest and maintenance costs.

Using the Tier 1 and Tier 2 rates

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

Vehicle type Tier 1 rate per km Tier 2 rate per km
Petrol or diesel 79 cents 27 cents
Petrol hybrid 79 cents 16 cents
Electric 79 cents 9 cents

Learn more about using kilometre rates

Claiming vehicle expenses

OS 19/04A: Commissioner's statement on using a kilometre rate for business running of a motor vehicle - deductions

OS 19/04B: Commissioner's statement on using a kilometre rate for employee reimbursement of a motor vehicle

Last updated: 07 Jun 2021
Jump back to the top of the page