Reminder on cents per km car expenses rate

The cents per kilometer car expense rate increased from 66 cents to 68 cents per kilometer from 1 July 2018.  Employers who use the cents per kilometer rate to pay car allowances for employees should ensure that car allowance rates are up to date.  If more than 68 cents per kilometer is paid, employers need to withhold tax on the excess amount under the PAYG withholding system.