Work Related Car Expenses
We get asked regularly what can be claimed for using your car for work. Even when you receive an allowance you can claim against this. Your employer may reimburse you for kilometres travelled, you can still claim against this.
What can be claimed?
- · Work related travel to do your job
- · Travel to visit clients
- · Travel to pick up office supplies
- · Travel between offices.
What Can not be claimed?
- · You can not generally claim travel for work because you are on call.
- · Any travel where home is part of the trip, eg: from home to a client, client to home
- · Dropping off the mail on the way home or collecting it on the way in
There are a couple of methods for claiming car expenses:
- · Cents per kilometre – maximum claim under this method is 5,000 business kms
- · 12% of original value
- · One-third of actual expenses
- · Logbook
The last three methods can only be used when more than 5,000 business kms are travelled.
Generally the following expenses can be claimed
- · Depreciation – if not a lease
- · Interest on loan – if not a lease
- · Lease payments
- · Registration
- · Insurance
- · Repairs & maintenance
- · Tyres
- · Fuel & oil – this may be estimated based on odometer readings
All expenses should have written proof except fuel & oil
To use the logbook method a log book must be kept for at least 12 continuous weeks. It is best to keep the logbook and all receipts and then at tax time your agent can work out the best method to maximise your deduction and thus your refund.
Further information on work related car expenses can be found on the ATO website http://www.ato.gov.au/content/00313836.htm
Please note that the above is general advice only and should not be relied upon without checking with your accountant or tax agent.