Income tax Dates
The rates set out below apply for the 2024-2025 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 2024-2025 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 | $1.17 cents | 37 cents |
| Diesel | $1.26 cents | 35 cents |
| Petrol hybrid | 86 cents | 21 cents |
| Electric | $1.08 cents | 19 cents |
Learn more about using kilometre rates
OS 19 04 (KM 2025): Kilometre rates for the business use of vehicles for the 2025 income year
Last updated:
06 Jun 2025