Drivers will get bigger tax deductions for car expenses from July
Starting July 1, Australians using their cars for business will benefit from increased tax deductions. The cents-per-kilometre rate will rise from 88 cents to 91 cents, reflecting higher operating costs. This change will apply to the 2026-27 financial year and will not affect the upcoming tax returns for the previous year.
- ▪The Australian Tax Office has increased the cents-per-kilometre rate for business car use from 88 cents to 91 cents.
- ▪This change is intended to provide relief for Australians facing higher fuel costs.
- ▪Taxpayers can claim deductions for up to 5000 kilometres travelled for business per car, per year.
Opening excerpt (first ~120 words) tap to expand
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.