August 30, 2022

Car Allowance Increase

From 1st July 2022 the cents per kilometre deduction rate for car expenses was lifted to 78c and applies to eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work related car expenses.

The move to 78c comes after the ATO was criticised after saying it would lift the deduction to 75c from July in mid March – with many noting it would leave millions of taxpayers short-changed and did not reflect the stark rise in petrol prices in 2022.

Please do not hesitate to contact our office on 9387 5637 if you require advice in relation to the most appropriate method for you to claim your work related car expenses.

Source: Accountants Daily

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