2023-24 Income Year: ATO raises cents per kilometre rate
As we enter the 2023-24 tax year, Australian taxpayers who rely on mileage reports for business-related driving will be positively impacted by the updated cents per kilometer (km) rate set by the Australian Taxation Office (ATO). In this article, we will explore the reasons behind the increase in the cents per km rate and how it will benefit individuals.
The ATO has raised the cents per km rate for the 2023-24 tax year to reflect changes in various factors, such as inflation, fuel prices, and the overall cost of vehicle ownership and operation. By increasing the rate to 85 cents per km, the ATO aims to ensure that individuals are adequately reimbursed or able to claim deductions that cover their expenses associated with business-related kilometers.
The new cents per km rate of 85 cents for the 2023-24 tax year will directly benefit individuals who rely on mileage reports for their business-related driving. This increase means that eligible taxpayers can now receive higher reimbursements or deductions for their business-related kilometers. For example, if you have traveled 1,000 km for business purposes, you may now be eligible to claim $850 (1,000 km x $0.85) as a reimbursement or deduction, which is higher than the previous tax year.
For more information on the cents per kilometre method, including the applicable rate and deductions for motor vehicle expenses, you can visit:
In conclusion, the new 2023-24 cents per km rate announced by the ATO will have a positive impact on individuals using mileage reports for business-related driving. It is important to keep accurate records, meet the eligibility criteria for claiming the ATO per km rate, and consider the tax implications of car allowances. If you have further questions or require personalized advice, it's advisable to consult a tax professional or reach out to the ATO directly for assistance.
