Income tax Dates
The rates set out below apply for the 2022-2023 income year for business motor vehicle expenditure claims. The Tier 1 rates reflect an overall increase in vehicle running costs largely due to fuel costs.
The table of rates for the 2022-2023 income year
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||95 cents||34 cents|
|Petrol hybrid||95 cents||20 cents|
|Electric||95 cents||11 cents|
Learn more about using kilometre rates
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