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Lornick(Newbie)Newbie
19 Mar 2024

Wondering if it is more beneficial to claim fuel milage at the end of the financial year instead of my employer.


I am a personal carer and use my own vehicle to go from one client to the other. Work, reimburses me 78c p/km. I am then taxed on this amount. Would it not be best to claim it back on tax at the end of the financial year? Fuel is crippling my income at the moment my work is over 70km from my first job sometimes 90km. Additionally, when I am sent to clients closer to home they make me pick up the work car which is 80kms away. Work always sends me to the furthest location to reduce their costs. I understand I cannot claim for car related costs to my first and last job to home, this is a major issue for me. I am clocking up 10,000 kms per 2 to 3 mths. Meaning more servicing, vehicle ware and tear. Yet, vehicle claims are only a small percentage of this due to my travel to first and last job.


So, to save on my expenses and put more money in my pocket, in my head it makes no sense to claim it from my employer if I am taxed on it. This also cripples my normal income, some weeks I am lucky to earn over $300 after I take out tax, fuel, drinks and meals etc. I am now considering changing my employment. Its a shame, as I love working for this employer, and love my clients.


Personally speaking, I think its terrible, how we cannot claim to our first job when we live so far away and petrol is over $2 a litre. Running my car into the ground and not to mention clocking the k/m's.

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1,106 views
3 replies

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
19 Mar 2024


I am a personal carer and use my own vehicle to go from one client to the other. Work, reimburses me 78c p/km. I am then taxed on this amount. Would it not be best to claim it back on tax at the end of the financial year?


Employer should not be deducting tax from cent/km allowance, where car expenses are likely to be deductible.


Deduction for car expenses should be claimed on tax return - either by log book method or cents per km.


Tax return claim is not an alternative to employer car allowance.


Best to get proper advice, relevant to your circumstances, from a local tax agent.


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
19 Mar 2024


I am a personal carer and use my own vehicle to go from one client to the other. Work, reimburses me 78c p/km. I am then taxed on this amount. Would it not be best to claim it back on tax at the end of the financial year?


Employer should not be deducting tax from cent/km allowance, where car expenses are likely to be deductible.


Deduction for car expenses should be claimed on tax return - either by log book method or cents per km.


Tax return claim is not an alternative to employer car allowance.


Best to get proper advice, relevant to your circumstances, from a local tax agent.


Liked by Lornick
Lornick(Newbie)Newbie
19 Mar 2024

Thank you for the clarification @Bruce4Tax. That has cleared things up for me. My employer stated that they do not deduct tax on my fuel reimbursements, it just looks like they do. I shall talk to a local tax agent.


Do you know if there is any way to claim the wear and tear on my vehicle, when I travel to my first client and last, from and to home? I assume not. However, I think I found a loop hole.


Itinerant or shifting places of work

If you do itinerant work (you have shifting places of work), you can claim transport expenses you incur for trips between your places of work and your home. The following factors indicate you do itinerant work:

  • You travel because it's a fundamental part of your work, not just because it's convenient to you or your employer. Correct
  • You have a 'web' of workplaces you travel to throughout the day and no fixed place of work.

This one can be a bit iffy, as I do have regular clients, they don't change constantly. My rosters do change all the time, however, I can be fixed at servicing the same multiple clients at different times and days. I may, also be called in to the office unexpectedly or to pick up PPE.


  • You regularly work at more than one work site before returning home. Correct
  • You are often uncertain of the location of your work site.

I am certain of my work sites, however, they can be cancelled or added at any given time, just not often.

  • Your employer pays you a travel allowance because you need to travel continually between work sites, and you use this allowance to pay for your travel. Correct.



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