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Budget 2024 | The Government has confirmed changes and provided more information on FamilyBoost. Find out more: FamilyBoost

Budget 2024 | The Government has confirmed changes to personal income tax, the independent earner tax credit, in-work tax credit, and the minimum family tax credit. Find out more: Personal income tax threshold changes

The rates set out below apply for the 2023-2024 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 2023-2024 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 $1.04 cents 35 cents
Petrol hybrid $1.04 cents 21 cents
Electric $1.04 cents 12 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: 06 Jun 2024
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