Motor Vehicle Expenses
If you use your car for work you may be entitled to claim the costs related to this, only if you personally own the car you are using for work. If your car is owned by your employer or is part of a salary package then you are unable to claim any car related expense. You also cannot claim any deduction for travel between your home and place of work.
There are two methods for claiming car related expense:
Cents per kilometer
When using the cent per kilometer, you may claim a single rate use for total work related kilometer travelled, with a maximum of 5,000 business kms per car. You are required to keep written evidence of how you worked out your business kms.
Rates:
78 cents per kilometre from 1 July 2022 for the 2022–23 income year
72 cents per kilometre from 1 July 2020 for the 2020–21 and 2021–22 income years
68 cents per kilometre for 2018–19 and 2019–20
66 cents per kilometre for the 2017–18, 2016–17 and 2015–16
The Log Book Method
If you travel more than 5,000kms you should use the log book method. When using the logbook method, you must keep a record for a minimum of 12 consecutive weeks during the income year, this 12 weeks must be representative of your travel throughout the whole year. Your logbook is required to be replaced every five year minimum. Your claim is based on the business percentage of the expenses for the car. To make your claim you must work out your business-use percentage.
You can claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee – for example, to:
• carry bulky tools or equipment that your employer requires you to use for work and there is no secure storage available at work
• attend work-related conferences or meetings away from your normal workplace
• deliver items or collect supplies
• travel between two separate places of employment, but not if one of the places is your home (for example, when you have a second job)
• travel from your normal workplace to an alternative workplace (that isn't a regular workplace) and back to your normal workplace or directly home
• travel from your normal workplace or your home to an alternative workplace that is not a regular workplace – for example, a client’s premises
• perform itinerant work.