I am using cent per kilometer method for 2022/2023 tax. The tax statement from Uber only shown the actual km from pick up to delivery. Some tax agency advised I can claim 50% more on top of the actual km because it doesn't included the km i traveled between deliveries. could you please specify that and how much % adding will be reasonable to claim? Please refer below.
Calculating Your Kilometres
With the cents per kilometre method you must make a reasonable estimate of your business kilometres for the financial year, up to a maximum of 5,000km per vehicle. To make a ‘reasonable estimate’ you must put proper thought into your calculation rather than just guessing, and you must be able to show the ATO how you worked out your result.
- Example 1 – you usually drive rideshare 3 times per week, for about 5 hours each time. You have worked out that in an average 5-hour session you do around 200km. You started driving in May so you drove for 8 weeks of the financial year. So you calculate 200km x 3 sessions per week x 8 weeks = 4,800km
- Example 2 – you drive for Uber and on your monthly tax summaries you have added up the ‘On Trip’ kms for the year to be 3,800km. But this doesn’t include kms in between trips, or driving to and from home at the start and end of your trip. You estimate that these extra kms that Uber don’t include would add another 50% on top of the on-trip kilometres, bringing the total to 5,700km. This means you can claim the maximum 5,000km.
Note that if you had multiple vehicles during the year you can claim up to 5,000km per vehicle. So for example if you changed vehicles halfway through the year you could claim up to 5,000km on the old car plus up to 5,000km on the new car.
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