Employees Using Their Own Vehicle

Morning Everyone,

Maybe just another whinge about work.

Well, I work for this company for the last 5 years now, They own multiple stores while I work in the head office as a Graphic Designer / IT specialist. For my work, I usually have to travel to various stores for different reasons (Fix IT Issues, Install new software ETC.)

for all the traveling to stores and stuff, I drive my own car, Minimum distance traveled between head office and stores is a 10km return trip to maximum 50km. Averagely I would say I travel 30km a month.

I never asked for the reimbursement for fuel or driving own car during my time here. Although When I asked to drive a company car to travel stores My boss told me that he does not have one available but he will reimburse for my expenses.

so I think I drove around 200 in the last 6 months but never asked for reimbursement. but last week when gave a fuel receipt to account department worth $50 my boss straight up refused and told me that there's no way I travel that much for him as $50 will give me 500km. So I told him I won't be driving my car for work reasons anymore.

so after 5 years of not offering anything my boss today offered that he's ready to pay me per K/M. so my question here is how much per K/M can I claim for. Taking in account that I'm driving my own brand new car.

P.S. Grammer Police please be easy on me, English is my third language.

Comments

  • +9

    I get 75 cents per km for driving my own car.

    If I was you I'd ask for at least the ATO rate.

    • +2

      yep, standard ATO allowance for per km rate (currently 68 cents per km)
      Also log your km so you can claim these $/km when doing your tax return

      So your $50 should get you ~73.5km worth of travel

      • +1

        To clarify, you cannot be reimbursed by your employer and then also claim a deduction on your tax, right? It's one or the other?

        • +3

          If you're being paid it as an allowance/expense (ie its on your payslip), then you claim the same km against your tax so that you dont pay tax on this portion of your yearly income

        • +2

          @SBOB: yes, it depends how they pay it, if it is an expense reimbursement, you can't also claim on your tax return. To claim mileage on your tax (up to 5,000km per year) you need a log book of dates and amount of travel and reason for travel to justify the claim.

        • +2

          @TimOfMcDowall: Yes, thanks - I guess this is what I was getting at, if its paid as a reimbursement and therefore not taxed then you can't go and then claim it as a deduction on your tax also.

        • @TimOfMcDowall: You don't require a logbook to claim under the c/km method; you just need to be able to show how you calculated the km's claimed.

  • +8

    Your boss sounds like a good bloke.

    Have a read of this it should answer your questions.

    https://www.ato.gov.au/Individuals/Income-and-deductions/Ded…

    Speak to your tax agent if you were also driving your car the previous years as you may still be able to claim it.

    • +8

      OP as English is your 3rd language - I'd like to clarify that he is being sarcastic and in actuality your boss is a complete penis of the highest order

      • Thanks, Billy, I seriously missed the sarcasm from GangGang's comment.

      • +4

        your boss is a complete penis of the highest order

        your boss is a complete penis of the highest shortest order!

        There - I corrected it for you!

  • +3

    My first thought was you were crazy to be doing this for 5 years without any cost recovery. I hope you have been keeping the logs and claiming it back on your tax as a bare minimum?

    2nd thought was, to your own admission, you drive 15km (unless you meant 150km) a month, that's 180km a year. Trying to claim over 2 years worth in one hit is a bit cheeky.

    Taking into account fuel, depreciation of the car and maintenance, I would be asking for no less than 20 cents a KM. That's $2 per 10km, around town my car does around 10L per 100km, so thats $15 to cover the fuel and $5 for depreciation and maintenance every 100km. Which is a bargain for your boss, maybe even push for 30 cents a KM and settle on 25c.

    Dont push too hard on this, you may find yourself out of a job

    • Thanks Mate, Sorry but I wanted to say minimum I drive 15km a month it goes up to 60-70km per month, so I reckon I need to do my maths better for a more realistic average

  • +2

    Keep a log of when/where you drive so it can be verified. Check what rate you are entitled to claim based on the ATO and the company policy. Then lodge your claim 'officially', don't expect them to pay for your fuel when you randomly show up with a $50 receipt.

    • +1

      Thanks Mate, you are right. All I thought was that since I'm being very flexible with them from past 5 years may b they will be bit flexible too. I was clearly wrong there

  • +3

    I drive my own car, Minimum distance traveled between head office and stores is a 10km return trip to maximum 50km. Averagely I would say I travel 30km a month.

    You should at a minimum be keeping a log book and claiming these Kms on your tax.

    So I told him I won't be driving my car for work reasons anymore.

    Fair enough then. Ask for some taxi vouchers next time!

  • +1

    Had a good chuckle at the username. Cheers. :)

  • i wish 50 dollars got me 500km

  • Install new software

    Dude, use remote desktop or something. Drive your car to the pub and have a beer while installing stuff remotely.

    • We use Windows Home edition that comes preinstalled on all PCs, so no remote desktop and team viewer just blocked our free account coz we're using it for commercial purpose.

      • lol, don't pirate non-commercial versions.

        Use completely free open-source software instead!

        e.g. https://archive.realvnc.com/download/open/

        Or get the boss to pony up for a paid version, seriously, what's your hourly rate, it can't possibly be worth you physically driving to other sites for low-level tasks.

      • +2

        If you have been working for 5 years for an Enterprise that uses Home grade products and abuses the Terms & Conditions of software that is made free for domestic users, you have been there too long.
        These type of employers will do everything that they can to rob you of a fair deal and limit career progression.
        Time to get another job where your efforts and diligence will be rewarded, not penalised.

        • Nah, half-arse the work from the pub

        • Thanks Azonki,

          been trying to get a new job since last year. Applying every single job that comes on Seek. No luck yet. I only secured 1 interview from last 50 plus jobs I applied, Guess I'm doing something wrong. My resume is quite good though.

          Thanks

  • The km rate is set by your award.
    Look up the rate the ATO uses for a tax deduction but should be more than that.
    Id say about 80c/km.
    It should contribute to fuel, maintenance, wear and tear.
    You have left it a bit late to claim for previous travel but if you kept a record you should be able for claim for the current tax year.
    If not then claim it against your tax

    • Thanks, Mate, Not really looking to claim past ones. Just trying to find a way that's fair on both of us (boss/me)

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