We rely on third-party information to set the kilometre rates for each income year. Due to COVID-19, we were previously unable to review these rates and asked customers to to use the 2018-2019 rates until we could complete our review. We have now been able to review and set the kilometre rates for the 2019-2020 income year.
Kilometre rates for the 2019-2020 income year
Compared to the 2018-2019 rates, the Tier One rates are slightly higher to reflect the small increase in the cost of owning a vehicle (such as insurance and registration charges). However, the Tier Two rates are slightly lower to reflect the decrease in the overall cost of operating a vehicle (mainly due to the lower price of fuel).
If you've already filed your 2020 income tax return using the 2018-2019 rates, you can contact us and we'll reassess your return to take into account the finalised kilometre rates for 2019-2020.
Contact us - income tax
More information on these kilometre rates and how we established them is available in Operational Statement 19/04A and 19/04B.