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I am frequently called upon to use my own motor vehicle to visit audit clients where I conduct audits.

 

            I owns a BMW Sports Convertible 3 Series, which I purchased on 14 January 2016 for $71,880. The registration number is CCTV-6.

 

            I have maintained a logbook for a consecutive twelve-week period during the 2016 income year. At the end of the twelve weeks, the logbook revealed that I travelled a total of 6,200 kilometres, of which 2,604 were work-related. This pattern of use is still relevant for the current year.

 

            At 30 June 2016, the odometer shows a total of 10,780 kilometres representing the total distance travelled for the 169 days from 14 January 2016 to 30 June 2016.

 

            At 30 June 2017, the closing odometer reading of the car was 34,411 kilometres and that there was no significant or material change in business usage during the 2017 financial year from the prior year.

 

            I personally paid the following expenses in relation to his car for the 2017 income year:

 

                                                                                                                                                 $

 

  • Registration  950
  • Comprehensive insurance 1,250
  • RACQ annual membership 289
  • Petrol and oil 3,500
  • Car washing 240
  • Annual dealer service (includes minor repairs) 430
  • Bridge tolls and parking fees (all work-related) – refer note below 160

 

            I have kept receipts for all of the above expenses.

 

            I was fully reimbursed by my employer for the bridge tolls and parking fees totalling $160 relating to visiting sites where news stories were unfolding.

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ATO Certified

Devotee

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Hi @Jack,

 

You can claim a deduction for work-related car expenses if you use your own car while performing work as an employee. This includes:

  • carrying bulky tools or equipment which you're required to use for work and cannot leave on site
  • attending conferences or meetings
  • delivering items or collect supplies
  • travelling between two separate places of employment, provided one of the places is not your home (for example, when you have a second job)
  • travelling from your normal workplace to an alternative workplace and back to your normal workplace or directly home
  • travelling from your home to an alternative workplace and then to your normal workplace or directly home (for example, if you travel to a client's premises)
  • performing itinerant work.

If you meet this eligibility criteria, and you've kept a log book for a minimum of 12 weeks, your allowable deductions are based on the business-use percentage of the expenses for the car. These expenses include running costs and decline in value but not capital costs (i.e. purchase costs). You can claim fuel and oil costs based on either your actual receipts or you can estimate the expenses based on odometer readings.

You cannot claim deductions for any costs that have been reimbursed by your employer. If you receive an allowance to cover any of your car expenses, you'll need to include this amount as assessment income under 'Allowances' on your tax return.

 

Our Work-related car expenses calculator can help you calculate the amount you can claim as a tax deduction for work-related car expenses.

Thanks.

1 REPLY 1

Best answer

ATO Certified

Devotee

Replies 0

Hi @Jack,

 

You can claim a deduction for work-related car expenses if you use your own car while performing work as an employee. This includes:

  • carrying bulky tools or equipment which you're required to use for work and cannot leave on site
  • attending conferences or meetings
  • delivering items or collect supplies
  • travelling between two separate places of employment, provided one of the places is not your home (for example, when you have a second job)
  • travelling from your normal workplace to an alternative workplace and back to your normal workplace or directly home
  • travelling from your home to an alternative workplace and then to your normal workplace or directly home (for example, if you travel to a client's premises)
  • performing itinerant work.

If you meet this eligibility criteria, and you've kept a log book for a minimum of 12 weeks, your allowable deductions are based on the business-use percentage of the expenses for the car. These expenses include running costs and decline in value but not capital costs (i.e. purchase costs). You can claim fuel and oil costs based on either your actual receipts or you can estimate the expenses based on odometer readings.

You cannot claim deductions for any costs that have been reimbursed by your employer. If you receive an allowance to cover any of your car expenses, you'll need to include this amount as assessment income under 'Allowances' on your tax return.

 

Our Work-related car expenses calculator can help you calculate the amount you can claim as a tax deduction for work-related car expenses.

Thanks.

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