The ATO issued a Determination (F2018L01023) on Wed 11.7.2018, to increase the cents per kilometre deduction rate to 68c/km (up from 66c/km) for claiming work-related motor vehicle expenses for income years commencing from 1 July 2018 – under Div 28 of the ITAA97. The Determination is the legislative instrument, provided for in s28-25(4).

After changes to the law in 2015, there are now only 2 methods of calculating deductions: the Cents Per Kilometre method and Full Log Book Method (there had been 4 methods).

This instrument replaces the 66c/km rate that was set in the last determination registered on 4 July 2016.

FJM 17.3.18

[LTN 131, 11/7/18; Tax Month – July 2018]


Comprehension questions (answers available)

  1. Are there now only 2 methods of claiming motor vehicle expenses provided for in Div 28 of the ITAA97?
  2. Are they the cents/km method and the full log book method?
  3. Is the rate 86¢/km?


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