Changes to work-related car expense deductions From 1 July 2015, there are now only two methods available to calculate work-related car expense deductions: the logbook method and the cents per kilometre method. If you have using the logbook method, you must record their motor vehicle usage in a logbook for a minimum continuous period of 12 weeks. This means if you have not already begun logging, you should start now. When you can claim and can't claim for car expenses When you can claim You can claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee, for example, to:
If you receive an allowance from your employer for car expenses, it is assessable income and the allowance must be included on your tax return. The amount of the allowance will usually be shown on your payment summary. When you can't claim Most people can't claim the cost of travel between home and work because this travel is private. Calculating your deductions There are some changes to work-related car expense deductions from 1 July 2015. Below is a breakdown of the methods and calculations which applied from and before 1 July 2015. From 1 July 2015 – two methods The government has simplified the car expense deductions for 2015–16 and future income years. From 1 July 2015, the one-third of actual expenses method and 12% of original value method have been abolished. The two methods available from 1 July 2015 are:
Cents per kilometre method The cents per kilometre method is available for use with some changes. Separate rates based on the size of the engine are no longer available from 1 July 2015. Under the revised method, individuals use 66 cents per kilometre for all motor vehicles for the 2015–16 income year. The Commissioner of Taxation will determine the rate for future income years.
Where you and another joint owner use the car for separate income-producing purposes, you can both claim up to a maximum of 5,000 kilometres. Logbook method
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