The ATO has released everything you need to know about using the cents per kilometre basis for claiming car expenses in the 2016 fringe benefits tax year.
For the 2015/2016 financial tax year, all vehicles will use a single rate of 66c per kilometre travelled.
Before 1 July 2015, rates varied based on the size of the vehicle engine and the new changes have caused confusion among those reimbursing their employees.
The uncertainty surrounding the rates for the 2016 FBT year has been acknowledged by the ATO and as a result they have announced they will be accepting 2016 FBT returns at the 2014-15 rate.
In those years the rates have varied from 65c, 76c or 77c depending on the vehicle size but for the time being, will stay at a single rate of 66c per kilometre.
The rate for the future income years will be determined by the Tax Commissioner but for 2016/2017, stick to the 66c.
If you would like to know more on car expenses and special arrangement for the 2016 FBT year, please give us a call on 03 5443 0344.