Claiming the use of my car on tax... how and what?

CryssieJade on 16/04/2015 - 00:03
Last edited 16/04/2015 - 08:27

Hi kids!!

I have a job where I have to use a car for work to cart things around. I've always been a public transport kind of girl, and have never had my own car (I used to borrow Mum's car before the engine blew up. Now no one in my family has a car).

I've been car hunting like no tomorrow, but have been hiring a car for the days I do need to take stuff to work.

When I do buy my car, what can I claim on tax and how? Can I claim the purchase price? I'm pretty well going to buy second hand from a private seller - unless there is a better option.

I'm not too keen on the idea of leasing a car, unless someone can reeeeeeaaly convince me otherwise.

My Mum can get a reduced rego cost through her Centrelink benefits…does the car have to be in my name to make a tax claim? (I'm assuming yes?) Or can it be in hers?

Same question for insurance…it's always been under her name and she is a rating one. I have never been an insurance holder, so no rating for me. I'm assuming for tax purposes it will have to be in my name?

These questions will probably win the Captain Obvious award, but I really am unclear on the answers… grateful for all advice, cheers :)

EDIT: I probably should mention that I am already given a km based travel allowance in my pay every week…does that make a difference?

Automotive

Comments

  • charzy on 16/04/2015 - 00:40
    +2

    Here's some homework for you.
    https://www.ato.gov.au/Individuals/Income-and-deductions/Ded…
    If you can't interpret this, ask your accountant.

    • CryssieJade on 16/04/2015 - 08:24

      Oh wow, that's a lot less than I thought I could claim, considering I don't use a car for anything except for work.

      Grrrr, I never wanted to own a car!!

      • dasher86 on 16/04/2015 - 09:41
        +1

        I think the best thing to do is speak to your employer about what options they can do for you as you need a car for work.

        • CryssieJade on 16/04/2015 - 20:00

          They suggested I hire a car on the days I need one, which is what I've been doing. Small company, I don't think they will do much more. They give me a healthy travel allowance already, which covers around 70% of my hire costs.

  • Smulder on 16/04/2015 - 14:07
    +1

    Keep in mind that using your car to drive to and from work is not considered 'work related travel' by the ATO, and you cannot claim for this travel.

    There is an exception to this where 'you need to carry bulky tools or equipment that you used for work and can't leave it at your workplace ', which you seem to imply in your post, but this would depend on your circumstances. The ATO gives the example of having to carry around a ladder.

    If you really do only use your car for work and nothing else, then you can keep a log book which shows a 100% work related use. You can then claim the full cost of running the car as a deduction (eg petrol, rego, insurance, servicing), as well as depreciation on the cost of the car over 8 years.

    However, the ATO is very suspicious of anyone claiming 100% business use.

    • CryssieJade on 16/04/2015 - 19:56

      Thanks for that info…100% business use was probably an exaggeration, but not by much. It probably is more like 85-90% business use. I rarely use a car for anything, hence why I've never had one. PT is a ton cheaper

      I work in a different location every day, where I have to drive my 'office' around and set it up everywhere I work.

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