Claim Deduction on Expense Using Own Car as PAYG Tax Payer

My circumstance is I need to drive a few hundred kilometers to the head office to attend meetings every month. I am on PAYG and the head office is not my regular work location.

I checked below ATO website:

Three methods on Deductions for motor vehicle expenses don't apply.
Cents per kilometre method and Logbook method are Only use this method if you are a sole trader or partnership. Actual cost method can use to claim your business's motor vehicle expenses, not my own car.

Deductions for travel expenses does not list my circumstance in either can claim or can't claim.

Comments

  • +1
    • Thanks. I just followed the links from Google but didn't check the url.

  • +3

    Are you already compensated by your employer for this? If not, have you asked them to?

      • +6

        More relevant than 99% of your comments!

        • -1

          Irrelevant.

      • +1

        If they are being reimbursed for the drive by the employer, then yes, entirely relevant.

        If they are receiving a travel allowance for the drive, entirely relevant.

  • +2

    As long as you can justify it when the tax office asks you too

  • +1

    You'd need to either be carrying bulky items that you use for work or travelling between workplaces.

    • Yep - this is why you see guys with Porsche 911 with roof racks and a ladder on top and a small 'fire alarm safety' business decal on the side. Probably not the most practical work car……likely to claim running expenses to the ATO

    • +1

      If you are going to an office that isn't your normal "place of work" it's claimable.

  • +4

    I am on PAYG and the head office is not my regular work location.

    What is your regular work location as outlined in your employment contract?

    As this is the location you can start to claim from for travel kms between workplaces in the eyes of the ATO.

    So if it lists the head office as your primary location but they allow you to WFH for 99% of the time, then you can't claim travel to the head office when you need to go in.

    But feel free to claim it if you think you can, you can claim anything you want at tax time, but you will need to be able to justify the ATO auditors for that claim if you even get audited.

    • As you are using your vehicle for business, I hope you have it insured as such.

      • +1

        As you are using your vehicle for business, I hope you have it insured as such.

        Look up the rules and you'll find the answer.

  • +6

    As others have said, it does not matter if the head office is your regular work location or not. What matters is that the travel is between workplaces.

    Travel between home and a work place is not tax deductible unless you need to carry bulky items for your role.

    So, ensure that you first go to your regular work location (assuming that is closer) and then drive from there to the head office.

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