It is official. The ATO has confirmed that the cents per km deduction rate will be lifted.
Initially proposed to be $0.75, this figure has changed to $0.78 and it applies to eligible taxpayers who choose to use this method when calculating their work-related vehicle expenses.
If you are unsure what method you have chosen or whether you qualify for this deduction, please do get in touch with us here at Glance Consultants so that we can discuss your personal situation to determine the best possible outcome for you.
The new deduction rate applies to the income year beginning July 1, 2022.
It’s important the ATO continues to monitor prices and potentially update the rate throughout the year due to increase in costs.
Other methods of deducting expenses could prove more tax beneficial for some taxpayers and so there is no need to rush into changing the way expenses are monitored just because this new and improved rate has become available. It is best to discuss your situation with our team, as the actual cost method might still suit you.
As always, it is imperative that taxpayers remain diligent with record keeping to avoid ATO scrutiny and to obtain the ideal tax result.