From 1 July 2015 methods for calculating motor vehicle expenses have been reduced to 2 methods; Logbook and Cents per KM methods.
New legislation provides a single cents per kilometre rate for the 2015/16 and future income years. Employers will continue to be able to pay a tax free cents per kilometre car allowance (for up to 5,000 business kilometres travelled) where the amount paid is within the specified limit.
In the 2015/16 income year the cents per kilometre rate is set at 66 cents per kilometre. Any amount in excess of the limit is taxable.