If a taxpayer is both an employee and operates an ABN sole trader business in the same income year, is it permissible to use different car expense calculation methods for each purpose on the same vehicle?
Specifically:
- Cents per kilometre method for the employee salary and wages work-related claim (D2)
- Logbook method for the ABN sole trader business claim (P8)
Hi @Ahmed_Aquib,
No, you can’t use different car expense calculation methods for the same vehicle in the same income year, even if you use that vehicle both as an employee and in your sole trader business. For each car, you must choose one method per income year.
That chosen method applies to all work‑related use of that car, across both your employee work, and your sole trader business use.
What you can do is:
But you can’t mix methods for the same vehicle in the same year.
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