Normally not released until the end of March or beginning of April to assist with completion of the FBT return, the Government has recently updated the cents per kilometre table as follows:
|NON-ROTARY ENGINE||ROTARY ENGINE||RATE PER KM|
|Up to 1600 cc||Up to 800 cc||65 cents|
|1601 cc – 2600 cc||801 cc – 1300 cc||76 cents|
|Above 2601 cc||Above 1301 cc||77 cents|
The ATO allows the above rates plus an additional 1.5 cents as the “reasonable rates” for the first 5,000 business kilometres in an employee owned car.
Note that the rates are not compulsory and employers should pay cents per kilometres in accordance with the applicable Award or EBA. Employers using the Government or ATO rates in accordance with their employees’ contacts may wish to review the payments.
Note: for payroll tax purposes, the cents per kilometre rate will remain at 75 cents a kilometre until 1 July 2014.