Income Tax Assessment Act 1997 – Cents per Kilometre Deduction Rate for Car Expenses 2020
Reference: MVE 2020/1
Document type: Draft Legislative Instrument
Enabling act: Income Tax Assessment Act 1997
Signatory: Louise Clarke Deputy Commissioner of Taxation
Registration number: F2020L00676
Registration date: 5 June 2020
This legislative instrument replaces and repeals Income Tax Assessment Act – cents per kilometre deduction rate for motor vehicle expenses 2018 (F2018L01023) , registered on 11 July 2018. | This legislative instrument repeals and replaces legislative instrument Income Tax Assessment Act 1997 – Cents per Kilometre Deduction Rate for Car Expenses 2018 (F2018L01023), registered on 11 July 2018.


1. Name of instrument: This determination is the Income Tax Assessment Act 1997 – Cents per Kilometre Deduction Rate for Car Expenses 2020. | 2. Commencement: This instrument commences on 1 July 2020. | 3. Application: This instrument applies to work-related car expense deductions, and sets the rate at which those deductions may be calculated using the cents per kilometre method. Subsection 28-25(4) of the Income Tax Assessment Act 1997 allows the Commissioner of Taxation to determine the rate for the cents per kilometre method for an income year. The Commissioner of Taxation has determined that the rate is 72 cents per kilometre for the income year commencing 1 July 2020. This rate applies to the income year commencing 1 July 2020, and remains applicable to subsequent income years until such time as the Commissioner of Taxation, having regard to subsection 28-25(5), determines that it should be varied. | 4. Determination: This determination applies to eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work-related car expenses. | 5. Repeals: This legislative instrument repeals and replaces legislative instrument Income Tax Assessment Act 1997 – Cents per Kilometre Deduction Rate for Car Expenses 2018 (F2018L01023), registered on 11 July 2018.