ATO announces new mileage rates for 2024-25
As we usher in the new financial year, the Australian Taxation Office (ATO) has announced an update to the cents per kilometre rate for business driving. Effective from 1 July 2024 to 30 June 2025, the new rate stands at $0.88 per kilometre, marking an increase of 3 cents from the previous tax year. This adjustment is important for businesses and employees who rely on this rate to calculate work-related car expenses.
Factors influencing the rate increase
Several factors contribute to the updated mileage rate. These include fluctuating fuel prices, which saw significant changes in late 2023 and early 2024. Additionally, regular expenses like road taxes and insurance premiums play a significant role in determining the rate, ensuring it accurately reflects the costs of operating a vehicle.
For more information on the cents per kilometre method, including the applicable rate and deductions for motor vehicle expenses, you can visit:
As always, it's important to keep detailed records of all work-related vehicle expenses to fully benefit from the updated mileage rate. If you have further questions or need personalized advice, consider consulting a tax professional or contacting the ATO directly for assistance.
