Announcements
The JobKeeper Payment scheme finished on 28 March 2021. Find out what this means for your business.

ATO Community

Re: Can i claim car repairs at tax time?

Newbie

Views 151

Replies 3

Hello,

 

I recently started doing menulog deliveries while work is slow. During this time i purchased a secondhand mazda 6 which unfortunately is having issues, I took it to a mechanic who informed me, it could cost up to $2000 to fix.

 

If i get this fixed and continue doing menulog will i be able to claim any part of the repair back on tax? 

Also will i only be able to claim the cost back through tax i've paid by doing menulog? I am recieving jobkeeper which is taxed but thats unrelated to my menulog income.

 

Thank you

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hello @GaryWynne

 

Assuming you do the work for menulog as a sole trader/business, you can claim a deduction for motor vehicle expenses, which includes repairs and servicing. This should not be confused with deductions for car expenses which are claimed by employees, and has different rules.

 

If you use the vehicle for both business and private use, you will only be able to claim the percentage of expenses that relate to business use, therefore its a good idea to keep a logbook or diary to record private versus business travel.

 

Claiming deductions reduces your taxable income from all sources, meaning the deductions are applied to your total income, not just the menulog income.

 

For more information, I recommend looking at the following: Motor vehicle expenses

 

All the best.

 

TonyATO

3 REPLIES 3

Community Moderator

Replies 1

Hi @GaryWynne 

 

What percentage of time do you use the car for work?

Taxicorn

Replies 0

@GaryWynne @KylieATO 

 

More importantly have you kept a "logbook"?

 

Most helpful response

ATO Community Support

Replies 0

Hello @GaryWynne

 

Assuming you do the work for menulog as a sole trader/business, you can claim a deduction for motor vehicle expenses, which includes repairs and servicing. This should not be confused with deductions for car expenses which are claimed by employees, and has different rules.

 

If you use the vehicle for both business and private use, you will only be able to claim the percentage of expenses that relate to business use, therefore its a good idea to keep a logbook or diary to record private versus business travel.

 

Claiming deductions reduces your taxable income from all sources, meaning the deductions are applied to your total income, not just the menulog income.

 

For more information, I recommend looking at the following: Motor vehicle expenses

 

All the best.

 

TonyATO