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JamesOnFire(Initiate)Initiate
3 Mar 2021

I am a doctor who works both as a contractor and employee at multiple sites, although they are all regular. My principal place of practice as per my registration is my home address, since this is where I do all my administration (e.g. billing, letters etc) and is my base for receiving correspondence and carrying out education.

I carry equipment in my car which I consider to be bulky as I cannot easily carry on public transport, and cannot leave securely at one worksite, as I need my equipment for the multiple sites I work with. Some of this equipment includes large weighing scales, textbooks, hand-held diagnositc devices (e.g. stethoscope, otoscope, dermatoscope etc, along with their attachments). I use this car exclusively for my medical work.

What's the pub test verdict? Will I be able to claim my vehicle as 100% business use and claim a deduction based on the carriage of bulky goods?

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1 replies
2,662 views
1 replies

Most helpful response

Most helpful reply

TonyATO(Community Support)Community Support
4 Mar 2021

Hello @JamesOnATO

The percentage of travel expenses you can claim will depend on whether you use the car exclusively for work, or you also use the car for personal/private use.

There are two separate deductions you may be able to claim:

  • Car expenses (for employees)
  • Motor vehicle expenses (for business/contractors)

As these are two different deductions, they each have their own rules and are claimed separately in your tax return. Because of this, you will need to determine the percentage of your expenses that relate to employment, contactor and personal/private use.

Generally, employees can't claim car expenses for travel between home and work, however you may be able to claim motor vehicle expenses as a contractor for a home-based business.

I highly recommend having a look at the following information:

  • Car expenses
  • Motor vehicle expenses for a home-based business
  • Motor vehicle expenses

If you need help calculating your car (employee) expenses versus your motor vehicle (contractor) expenses, you may want to consider getting assistance from a registered tax agent.

TonyATO

All replies

Most helpful reply

TonyATO(Community Support)Community Support
4 Mar 2021

Hello @JamesOnATO

The percentage of travel expenses you can claim will depend on whether you use the car exclusively for work, or you also use the car for personal/private use.

There are two separate deductions you may be able to claim:

  • Car expenses (for employees)
  • Motor vehicle expenses (for business/contractors)

As these are two different deductions, they each have their own rules and are claimed separately in your tax return. Because of this, you will need to determine the percentage of your expenses that relate to employment, contactor and personal/private use.

Generally, employees can't claim car expenses for travel between home and work, however you may be able to claim motor vehicle expenses as a contractor for a home-based business.

I highly recommend having a look at the following information:

  • Car expenses
  • Motor vehicle expenses for a home-based business
  • Motor vehicle expenses

If you need help calculating your car (employee) expenses versus your motor vehicle (contractor) expenses, you may want to consider getting assistance from a registered tax agent.

TonyATO

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Car as business vehicle for a sole trader doctor | ATO Community