Do you know whether or not you should be claiming car expenses in Australia?
Do you use your car for work purposes (e.g. do you use it to travel to different clients or different job sites)?
Want to have the opportunity to maximise your tax deductions?
Can I claim my personal vehicle as a tax deduction?
One the most common questions we get asked here at Stellar Accounts is whether you can claim your personal vehicle as a tax deduction.
If you use your car for travelling to client meetings or job sites you may be eligible.
Stellar Accounts will give you expert tax advice and all the assistance you need regarding claiming work related travel expenses and tax deductions. We’re here to help on 0428 887 104, alternatively you can submit an online enquiry here.
How does a car allowance work in Australia?
So if you do use your car for work purposes the next question is… ‘so how does a car allowance work in Australia’?
If you use your car often enough for work, you will need to start a logbook to record your activities.
If you do not use your car often enough to justify a logbook, then you can still claim up to 5000kms (based on actual travel).
How to claim car expenses using a vehicle log book
If you think you should be claiming car expenses in Australia this is what you need to do;
- Start a logbook for 12 consecutive weeks.
- Start the logbook now so that it will be valid for the 2017/2018 tax year.
- Record the start and finish odometer readings when you travel between job sites (so that we can determine what percentage you have driven your car for personal versus business use).
- Only record valid home to work travel (you can not claim your travel between home and work unless you are carrying heavy equipment etc, that can not be securely locked up at work or on worksite).
- Claim other related car expenses! Once we know the percentage of your work travel, you can claim that portion of all of your car expenses. For example, if you use your car for 20% of the time for work purposes, then you can also claim 20% of your fuel, car maintenance, rego, insurance, interest on car loans, tolls, car washing and other related expenses.
Claiming Car Expenses in Australia
Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.
With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.
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