Income tax Dates
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
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