Claiming Work-Related Travel Expenses - Tax

• 

  BensonP on 30/04/2017 - 21:28

  +5

  When if comes to vehicle expenses, you first need to work out your business use percentage.

  You cannot claim to your main office of employment. Anything else is claimable.

  You'll need to have a diary/travel log, for a continuous 12 weeks, for all business kilometres. From there you, or your accountant, will take into account your private kilometres to determine your percentage of business use. (example - 4000 business out of 5000 total = 80% business use)

  From there you are able to claim 80% of all expenses related to your vehicle (petrol, tyres, servicing, registration, insurance, car wash, car stereo and performance parts etc.) I claim my entire Citylink bill, as I don't use a Citylink for private use.

  Be aware that you don't get all that money back, cash in hand. It REDUCES your TAXABLE INCOME, thus lowering the tax you need to pay.

  Let me know if this isn't clear enough

  • 

    LemonShapedRock on 30/04/2017 - 21:34

    Thanks for the advice!

    Is there a special diary/travel log that the ATO likes people to use?

    Or do you just use an excel spreadsheet?

    Do you have any suggestions on a template perhaps?

    • 

      BensonP on 30/04/2017 - 21:40

      +1

      Excel is fine.

      Just make sure on the first day of the logbook you write the starting odometer and the last day has the final odometer reading.

      Then you can write whatever business kilometres apply in between those dates.

      Also, keep receipts for all your petrol and service stuff.

    • 

      jjjaar on 01/05/2017 - 08:17

      Officeworks or $2 shops should even sell a hard copy book if you want to keep it in your car for ease. Yes

      • 

        PAPower on 02/05/2017 - 15:20

        and this book is tax deductible, too!

    • 

      jellykingdom on 01/05/2017 - 09:44

      Try that Quickbooks app that is always being advertised on Youtube. Its supposed to do km tracking etc for tax time

    • 

      boomramada on 02/05/2017 - 12:17

      https://www.officeworks.com.au/shop/officeworks/p/wildon-87w…
      maybe there is a app for that now?;)

• 

  chumlee on 30/04/2017 - 21:30

  Do you use an accountant?

  • 

    LemonShapedRock on 30/04/2017 - 21:33

    This will be my first year where I think I might need to.

    Have always looked after everything myself.

• 

  djkelly69 on 30/04/2017 - 22:03

  +2

  You don't get allowances or reimbursement from your employer for all that travel? Would be preferable to claiming a deduction.

• 

  dasher86 on 01/05/2017 - 08:16

  +5

  if you are travelling less the 5k kilometres per year you can use the cents per kilometre method which is a lot easier.

  https://www.ato.gov.au/Business/Income-and-deductions-for-bu…

  • 

    BensonP on 01/05/2017 - 12:15

    Whoops! My comment above assumed he was traveling more than 5000 KMs.

    How silly of me!

  • 

    LemonShapedRock on 01/05/2017 - 16:34

    Wow this method is ridiculously easy…

    Can I assume that if I did use the method I wouldn't be able to claim my rego, insurance, e-tag, petrol etc?

    • 

      dasher86 on 01/05/2017 - 16:38

      +1

      It's all included in the cents per kilometre.

      You cannot claim for everything else.

      • 

        LemonShapedRock on 01/05/2017 - 16:58

        Thanks for the advice, I do travel less than 5,000KM per year so this solution is MUCH easier than the logbook option.

      • 

        dasher86 on 02/05/2017 - 08:10

        @Joe146:
        this is by no means financial advice but i would claim the full 5k or very close to.

• 

  PVA on 01/05/2017 - 09:49

  Go and see a tax person, even H And R block. They will tell you exactly what you need to do after you explain all the details to them.