Changes to car expense deductions
If you use a car for work you may be able to claim a deduction for car expenses.
Now keep in mind that simply driving to and from home and work doesn’t generally count but if you drive to meet clients, attend work-related conferences or go between two or more separate places of employment you may be able to claim a deduction.
One method you can use to calculate deductions for car expenses is cents per kilometre. This involves multiplying the number of work-related kilometres you travelled in the car in the financial year by the rate per kilometre which is now 78 cents per kilometre.
You need to keep records showing how you worked out your work-related kilometres and the maximum you can claim is 5,000 kilometres per car.
It’s also important to note that you can’t claim any other expenses such as registration, insurance or repairs when you use this method.
Effie Zahos
Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.
The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.
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These Tax Tips with Effie Zahos are for general information only, not tax advice.
Before making any decisions you should speak to a registered tax adviser.