Claiming a deduction for car expenses
There are 4 method that can be used to calculate your deductions for car expenses;
Method 1 - Cents per kilometre
- Your claim is based on a set rate for each business kilometre
- You can claim a maximum of $5,000 business kilometres
- You do not need written evidence
Method 2 - 12% of original value
- Your claim is based on 12% of the original value of the car
- The value is subject to luxury car limits
- Your car must have (or would have) travelled more than 5,000 business kilometres in the income year
- You do not need written evidence
Method 3 - One-third of actual expenses
- You claim one-third of your car's expenses
- Your car must have (or would have) travelled more than 5,000 business kilometres in the income year
- You need written evidence or odometer records for fuel and oil costs
- You need written evidence for all the other expenses for the car.
Method 4 - Logbook
- Your claim is based on the business use percentage of each car expense
- You need a logbook so you can work out the percentage
- You need odometer readings for the start and end of the period you owned or leased the car
- You can claim fuel and oil costs based on odometer records
- You need written evidence for all the other expenses for the car.
Please contact us to discuss which one for these methods most suits your needs
Information provided by ATO website
