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Punter1(Initiate)Initiate
18 Aug 2025

Hi guys,


I receive a $10k Car Allowance and also $2,000 on a fuel card.


I am using my own car.


Have searched the ATO website but am getting a bit of conflicting information.


What am I allowed to claim on my personal tax return as a motor vehicle deduction?


Is it correct that I can claim for the business portion of car expenses used, but not the fuel purchased as this is effectively a reimbursement? I note that my employer does not reimburse me for the specific fuel expenses I incur, but rather just gives me a $2k fuel card to spend on petrol for the year.


This is reported separately to my Car Allowance on my Payment Summary.


Would I have to do the Log Book method and claim the business portion for my Motor Vehicle expenses, but exclude the fuel?


Would I not be allowed to use the Cents per KM method as the fuel card would be regarded as a reimbursement and this is double dipping?


Thanks

733 views
1 replies
733 views
1 replies

All replies

NikkiATO(Community Moderator)Community Moderator
20 Aug 2025

Hi @Punter1,


Whether you can claim deductions on your allowance depends on whether the allowance is (or isn’t) reported on your income statement and whether you spent more than your allowance amount. The link above will go into this in a bit more detail.


If your employer gives you a fuel card, that’s a fringe benefit, so it’s treated as if your fuel has already been reimbursed. You can’t use the cents per km method or claim a deduction if fuel is reimbursed, as you’re right – that would be double dipping.


You can still use the logbook method to claim other eligible car expenses, but fuel would need to be excluded. 

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Car Allowance + Fueld Card deduction | ATO Community