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FBT Changes

Proposed cents per km rate change

A draft legislative instrument has been issued proposing an increase to the cents per km rate for claiming deductions for work-related car expenses under Division 28.


The rate is proposed to increase from the current 68 cents per km to 72 cents per km commencing from 1 July 2020 (i.e. the 2021 income year).


This would increase the maximum claim under this method (i.e. for 5,000 business kms) from $3,400 to $3,600.


The rates from April 1 2020:

  • Engine capacity 0-2500cc - 56 cents/km

  • Engine capacity over 2500cc - 67 cents/km

  • Motorcycles - 17 cents/km


Reasonable amounts for food and drink

The ruling sets out the reasonable amounts for food and drink incurred by employees receiving the living away from home benefit from 1 April 2020.


  • One adult - $276/week

  • Two adults - $414/week

  • Three adults - $552/week

  • One adult and one child - $345/week

  • Two adults and one child - $483/week

  • Two adults and two children - $552/week

  • Two adults and three children - $621/week

  • Three adults and one child - $621/week

  • Three adults and two children - $690/week

  • Four adults - $690/week


An adult is a person who has attained the age of 12 years before the beginning of the FBT year.


For larger family groups, the reasonable food and drink is the above amounts plus:

  • $138 for each additional adult

  • $69 for each additional child




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