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Can I use cost/kilometre method for car expense while my fuel expense is reimbursed by my employer?

Newbie

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My job requires me to travel frequently for a long distance. As a result, my employer reimburses my fuel expense. However, since fuel expense is only a small part of the operating expense, I am wondering if I could use the cost/kilometre method for claiming car expense. Thanks in advance.

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ATO Certified

Devotee

Replies 1

Hi @FelixChong

Welcome to the ATO online community

 

To claim a work-related deduction:

If you receive a travel allowance:

  • you must declare the allowance on your tax return as income
  • you are entitled to claim a deduction for the actual expenses you incur, less any private component.

If you get paid an allowance for some travel expenses (including overtime meal allowances, and domestic and overseas travel allowances), you do not have to keep written evidence of your expenses provided your claim does not exceed the reasonable allowance amount we set for each year.

If you want to claim more than the reasonable allowance amount we set, you need to keep evidence of your expenditure.

Infomration can be found on the ATO website https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-travel...

 

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
2 REPLIES 2
Highlighted

Best answer

ATO Certified

Devotee

Replies 1

Hi @FelixChong

Welcome to the ATO online community

 

To claim a work-related deduction:

If you receive a travel allowance:

  • you must declare the allowance on your tax return as income
  • you are entitled to claim a deduction for the actual expenses you incur, less any private component.

If you get paid an allowance for some travel expenses (including overtime meal allowances, and domestic and overseas travel allowances), you do not have to keep written evidence of your expenses provided your claim does not exceed the reasonable allowance amount we set for each year.

If you want to claim more than the reasonable allowance amount we set, you need to keep evidence of your expenditure.

Infomration can be found on the ATO website https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Vehicle-and-travel...

 

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
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Newbie

Replies 0

HI Tracy, thanks for your answer.