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12 Apr 12 Car expenses: cents per kilometre rates for 2011-2012

The cents per kilometre rates for calculating tax deductions for car expenses for the 2011-2012 income year are unchanged from the rates for the 2010-2011 income year. Schedule 1 to the Income Tax Assessment Regulations 1997 has been amended to insert the rates for the 2011-2012 income year, but those rates are the same as for the previous year: Income Tax Assessment Amendment Regulation 2012 (No 1) (SLI 2012 No 47; made 5 April 2012; registered 11 April 2012).

The rates in the Regulations increase when there is an upward movement of the Private Motoring Subgroup (series ID A2326656J) within the Consumer Price Index (ABS catalogue number 6401.0). Since the Private Motoring Subgroup index at September 2011 was still below its level at September 2008, the rates remain unchanged.

The amendment is also relevant for the purposes of the Fringe Benefits Tax Assessment Act 1986. The definition of “basic car rate” in s 136(1) FBTAA 1986 provides that the rate is the same as that prescribed for the purposes of s 28?25 ITAA 1997. “Basic car rate” is used in the calculation of the taxable values of a number of fringe benefits.

The rates for the 2011-2012 income year are therefore as follows:

Description Engine capacity of car not powered by a rotary engine (cc) Engine capacity of car powered by a rotary engine (cc) Rate per Kilometre (cents)
Small car Not exceeding 1600cc Not exceeding 800cc 63
Medium car Exceeding 1600cc but not exceeding 2600cc Exceeding 800cc but not exceeding 1300cc 74
Large car Exceeding 2600cc Exceeding 1300cc 75
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