Get in touch
ATO’S new motor vehicle rates
2 August 2018
NEW MOTOR VEHICLE RATES FROM 1 JULY 2018
Cents per kilometre rate
The Australian Taxation Office has advised that the cents per kilometre rate has been increased to 68 cents per kilometre from the 1 July 2018.
The cents per kilometre rate is applicable for businesses paying their employees a motor vehicle allowance based on the number of kilometres they travel. For example, if an employee travelled 250 kilometres, the new allowance payable to them is $170 compared to $165 as was the case before the 30 June 2018.
It is additionally good news for individuals when preparing their 2019 tax return. As a bit of a recap, under the cents per kilometre method a deduction can be claimed for the number of kilometres travelled during a year up to a maximum of 5,000 kilometres. Written evidence is not required to be kept, however the Australian Taxation Office has voiced concerns over the last few months about more questions being asked if 5,000 kilometres are being travelled each year without any real grounds for the deduction. For example, claiming the travel between home and work is not allowed.
GST claimable on Motor Vehicles
From the 1 July 2018, the Australian Taxation Office has increased the car limit to $57,581.00.
Cars with a purchase price higher than the car limit are only able to claim GST on 1/11 of the car limit. For example, if a business purchases a vehicle costing $75,000 on the 15 July 2018, the maximum GST credit they can show on the next business activity statement is $5,234.
If you would like assistance with recording the correct GST on the acquisition of a motor vehicle, please contact PJT – we are awesome!
Latest News
Navigating Inheritances. Nicholes Family Law Partners Nadine Udorovic and Bec Dahl chat to Danny Archer and Damian McMahon. Together, they delve into the complexities of inheritances, offering valuable insights from both legal and financial perspectives on how to navigate this important topic.
Watch the video above from Thayne. As 2024 comes to a close I thought I'd take the opportunity and send a thank you note to you all as gratitude for your continued support and loyalty. Throughout 2024 we have experienced; 1. Exceptional investment returns from all asset classes and sectors: ASX 200 up 23% S&P 500 up 30% AUST. Bonds up ~4.5% INTERNATIONAL Bonds up ~6% Aust Retail Property Trust up 39% 2. This hopefully reminds you all that it's best to remain invested even when economic conditions are uncertain. 3. We are actively monitoring and keeping an eye on US economic data particularly to understand which direction inflation may head, how this will impact interest rates and currency valuations, will there be a resurgence of small companies, emerging markets and bond and property prices. 4. With our research team we are well positioned to keep on top of the ever changing landscape, making investment decisions to maximise returns and minimise risk with regular investment committee meetings and analysis of data. 5. For many of our actively managed investment portfolios we ranked in the top 5 if not top 10 of throughout the course of the year which is a testament to the structure of Mulcahy & Co offices, people, systems and processes that we continue to build on to provide a quality service and outcomes to you all. 6. Please remember here at Mulcahy & Co the Financial Planning team is a part of a bigger network incorporating Accounting, Lending and Legal to deliver Financial Security 360 to make sure all of your financial needs are met and complement each other to achieve your goals and objectives. Once again I'd like to thank you for your support and wish you and your families a Merry Christmas and happy new year. The Mulcahy & Co Financial Planning Team
We meet Accounting Partner Eamon and Mark from Compass Business Accountants who has joined the Mulcahy & Co Group operating from our Toowoomba, Queensland office. Host Gavin Nash talks to the pair who are operating from this thriving inland city and what services they offer their clients.
Quicklinks
Tools
Office Locations
Mulcahy & Co acknowledges all Aboriginal and Torres Strait Islander Traditional Custodians of Country and recognises their continuing connection to land, sea, culture and community. We pay our respects to Elders past and present.
Liability limited by a scheme approved under Professional Standards Legislation - A MEMBER OF LAW AUSTRALIA
Australian Financial Services Licence No. 340094
Mulcahy & Co Financial Services Pty Ltd is a credit representative (397076) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)