Claiming Mileage for Tax

the fig man on 13/09/2023 - 21:42
Last edited 13/09/2023 - 21:45

Want to sound out fellow ozbargainers on this. My accountant suggested that I can’t claim any work mileage driven on tax. He says you can only claim miles if you drive to work and then drive to another related work site or location. And only this second trip is claimable (So only B to C. Not A to B)

My work involves driving to different sites all over the city which change each day. Some sites may be 15 minutes from home. Others may be over an hour. Once you get to site you may need to drive to different parts and back. It’s the kinda job where driving and transport are essential.

I’ve heard people at work mention they all claim mileage, the 5000km a year. Are they skating on thin ice ?

What can I actually claim ?

Yes - general advice only. I know.

Financial Taxation

Comments

  • MS Paint on 13/09/2023 - 21:45
    +3

    Your accountant obviously doesn't know shit.

    Definitely take whatever advise advice you get here.

    • [Deactivated] on 13/09/2023 - 21:49
      +1

      He says you can only claim miles ….

      American accountant so dumb as

    • CodeXD on 13/09/2023 - 21:50

      From what I read on ato link, it is same as what the accountant said?

      • MS Paint on 13/09/2023 - 21:51
        +5

        I thought by now I wouldn't need the sarcasm tag.

        • CodeXD on 13/09/2023 - 21:51
          +2

          You're doing it wrong mate

      • djkelly69 on 14/09/2023 - 04:43

        Did you read the section titled 'Itinerant or shifting places of work'?

        • djkelly69 on 14/09/2023 - 09:12
          +1

          For those not bothering to read the link, this is the specific example given for 'multiple work sites each day':

          Mitchell is doing itinerant work because he is regularly working at multiple sites during the day. He can claim deductions for the transport costs of his trips:

          • between home and work each day
          • between each site during the day.

          Without knowing anything about the OP's work, it sounds exactly like what they described, so all work-related travel should be claimable.

          Personally I would be finding another accountant if their advice is that bad.

  • 6079 Smith on 13/09/2023 - 21:49
    +1

    If you’re driving over 5k for work I would recommend using the log book method this year, esp if you’ve got a newish car to depreciate

    Given your role I don’t imagine you’d have any issues claiming the 5k. My understanding was that you couldn’t claim from home to your regular place of work (or if you have a set workplace on X day of the week, every week, this would be considered a regular workplace). All other trips are claimable.

    • leiiv on 14/09/2023 - 00:42
      +1

      The question is how a "regular place of work" is defined. Let's say the contract says the place of work is B. You live at A. It turns out you need to go to C instead of B 90% of the days in a year. So the trip from A to C is not claimable? What if the contract says the place of work is A?

      • Subere on 14/09/2023 - 07:10
        +1

        So claim B to C. Put the trip in Google and figure out the distance.
        Then do C to B because you go back to base before going home.

  • Kongzi on 13/09/2023 - 21:53

    Kms

  • brendanm on 13/09/2023 - 22:09
    +2

    Claim away, it's only going to get wasted anyway.

  • Benoffie on 13/09/2023 - 22:12
    +2

    Accountant is correct and a lot of teachers get stung with an audit on this (plus other bs they claim).

    For example:

    As a TRT, I cannot claim to drive to work and back (site A) However, if I tutor after school (site B), I can claim the mileage from site A to site B only.

    Another example:

    I work at one school in the morning and another school in the afternoon.

    Can't claim to site A but can claim between A and B but not home from B.

    Teachers have other stuff they get caught on (sports coaching, camps etc) but yours is fairly straight forward.

    • hasher22 on 14/09/2023 - 11:16
      +1

      OP is a bit different, they have different sites from they implied. So they could be at site A one day, site B next day, site C the next. Then all the travels between sites in the day.

      What does the ATO define as "regular place at work"?

      Cause to me, if my job is to travel to different places every day as the first stop, then you can claim up to 5000km or logbook method.

  • sumyungguy on 13/09/2023 - 22:13
    -1

    Depends on whether you're an employee or a sole trader claiming travel as a business expense.

  • jv on 13/09/2023 - 22:14
    +1

    What can I actually claim ?

    Driving between different places of work, but not to/from home.

    • AustriaBargain on 13/09/2023 - 22:43
      +2

      What if they also work from home.

      • JimmyF on 13/09/2023 - 22:47

        Its grey……but I was once employed in a WFH role pre covid and having to visit the office meant I could claim the trip!

        My accountant asked, I said my contract says my home site is WFH, so any trip into the office would be me visiting another site. They agreed. So its grey as it will come down to what your contract says.

        • jv on 13/09/2023 - 23:03

          Its grey…

          You just need to call the ATO.

          • JimmyF on 14/09/2023 - 08:05

            @jv:

            You just need to call the ATO.

            I'll add this to the list of reasons you have been wrong. But I explained why its 'grey', OP needs a contract that stats their home is their office site, also something that is covered on the ATO website.

      • jv on 13/09/2023 - 23:02
        -1

        What if they also work from home.

        You still can't claim unless you run a business and are travelling to clients.

        • JimmyF on 14/09/2023 - 08:03

          You still can't claim unless you run a business and are travelling to clients.

          Wrong,

          I could make a list of reasons your wrong, but you don't like lists. So instead go have a read of the ATO website, it covers this example. You don't need to be a business.

      • joelmuzz on 15/09/2023 - 16:46

        Will the diary/logbook show that?
        Sounds like an honest log will show they work 9-5 but at various but repeated locations, with no days in the home office at all.

        The most robust solution is to get the employer to nominate the closest office as base, and then stop there (or at least make an effort to make the logs and anything ATO might be able to see in and audit show that) each morning and afternoon.

  • JimmyF on 13/09/2023 - 22:44

    What can I actually claim ?

    You can claim only once you have arrived at your your work 'base/office'. So if that moves around, then yeah you're out of luck legally.

    But with all things 'tax' you can claim whatever you want, its only if you get audited you are screwed.

  • peter05 on 14/09/2023 - 00:53
    +3

    its simple, you drive into the office to collect your equipment, then head out to site. claim all kms from office to site

  • Zeph101 on 14/09/2023 - 06:37

    You are actually able to claim travel to and from work IF you are carrying bulky tools or equipment. But if there is secure storage available at your regular workplace then the claim can be denied.

    A hammer is not a bulky tool btw as some people try to claim

    • MS Paint on 14/09/2023 - 06:40
      -1

      Plenty of tradies who think their bulky tool is in the front of their pants.

    • brad1-8tsi on 14/09/2023 - 13:15

      I used to claim for into work Monday and home Friday and any other time I needed the tools at home.

      I also started claiming daily at one place as it got broken into once and they didn't upgrade the obviously low grade security.

  • bemybubble on 14/09/2023 - 07:14
    +4

    https://www.ato.gov.au/law/view/document?DocID=TXR/TR9534/NA…

    You may be like wieners case. See paragraph 22-27
    In any event you’ll find an example in the above link that represents your situation.

  • brad1-8tsi on 14/09/2023 - 13:12

    Your accountant is a bit crap.

    You'll have a nominated "place of work" or your home base. Any km between home and the "nominated place of work" is NOT deductible.

    Anywhere else is fair game. That includes any work sites on the way into work or on the way home.
    eg: My commute was Hurstville-Campbeltown (45km). We had a worksite at the Mt Annan Botanic Gardens about 5km away. My boss wanted me to inspect the site every day before coming to the office, which I did for 3 months. 40km of tax deduction claimed every day. If I really wanted to push it the firm would have paid me mileage but there was a lot of give/take in that job.

    You can claim a maximum of 5,000 work-related kilometres without a log book but if the ATO asks you have to be able to show how you work out your work-related kilometres. This might be through diary notes, your calendar or emails asking you to attend site. I just kept a excell spreadsheet which was full of lies but looked legit. I also claimed less than 5000km, say 4892 or 4953 because I figured it was less likely to draw attention from whatever algorithm the ATO use - probably a misguided theory.

    • joelmuzz on 15/09/2023 - 16:34

      The fact that your number didnt come up in the audit lottery doesnt make his accountant a bit crap.
      Anyone can fabricate evidence, but good luck if they do audit your case (they have 5 years) because visiting a site 5km from the office reguraly every day for 3 months and then claiming 40km wont go down well. They will have multiple issues with that.

      • brad1-8tsi on 15/09/2023 - 18:00

        Obviously you are yet another victim of our failing education system as your reading skills are lacking.

        As I wrote, the site was 40km from home and I had to go there before attending the office. Totally legit.

        His accountant has given him incorrect information.

        Because I doubt you've looked up the ATO rules here is a copy/paste. Note the last 2 lines.

        You can claim a tax deduction for the cost of transport on trips to:

        *perform your work duties – for example, if you travel from your regular place of work to meet with a client
        *attend work-related conferences or meetings away from your regular place of work
        *deliver items or collect supplies
        *go between 2 or more separate places of employment, such as if you have more than one job (but not if one of the places is your home)
        *go from your regular place of work to an alternative place of work that isn't a regular place of work (for example, a client's premises) while still >on duty, and back to your regular place of work or directly home
        *home to an alternative place of work that isn't a regular place of work to perform your duties, and then to your regular place of work or directly >home (this doesn't apply if the alternative place of work has become a regular workplace).

      • bemybubble on 15/09/2023 - 18:56

        they have 5 years

        Not true. You have to maintain records however they can only go back two years from NOA in most cases

    • sumyungguy on 15/09/2023 - 20:25

      I just kept a excell spreadsheet which was full of lies but looked legit

      I used to work with a senior manager who was a police officer in a previous life. He used to say: it's only fraud if you get caught.

  • bemybubble on 14/09/2023 - 16:56

    We had a worksite at the Mt Annan Botanic Gardens about 5km away. My boss wanted me to inspect the site every day before coming to the office, which I did for 3 months. 40km of tax deduction claimed every day. If I really wanted to push it the firm would have paid me mileage but there was a lot of give/take in that job.

    Based on what your describing travel is not inherit to your job. Your description matches that of Joe at paragraph 20

    Again - another reason to seek good advice.

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