Commissioner's statement on using a kilometre rate for business running of a motor vehicle

This statement replaces Operational statement 09/01. Part one of the statement covers the deductions available for a person who uses their motor vehicle for both business and private purposes. Part two covers the tax treatment for reimbursement amounts paid to an employee for the use of their personal vehicle in the employer's business. The statement reflects the legislative change to subpart DE of the Income Tax Act 2007 and the introduction of a new two tier approach to the use of the kilometre rates. The kilometre rates for the 2017/2018 income year are also set out in this statement.