How do i manage Car Allowance correctly?

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(Newbie)Newbie

9 Apr 2025

hi guys,

I operate a private vehicle using log book at 62.9% business kms.

Year on year I keep record of all expense (depreciation, running costs etc)

I deduct from Taxable income the total expense x 0.629.

My employer has now offered me a car allowance. On my pay slip it is not taxed or included in Gross Annual income.

I am reading many messages about how to handle this new scenario.

What are my options?

Add the Allowance to income and deduct 62.9% of the Allowance of taxable income but if I do that can I still claim my expenses as I am doing now??
Add the allowance to income and deduct 62.9% of the allowance of taxable income only.
Ask my employer to change the way Allowance is paid to be included in salary taxed PAYG.

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