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2017 Tax Tip #5 - Maximise Motor Vehicle Deductions

Posted by Georgia Kirby on Jun 27, 2017 7:00:15 AM

There are only two choices for how you can claim work-related motor vehicle travel.

You can claim a deduction for your vehicle expenses on the cents-per-kilometre basis if the travel claim does not exceed 5000 kilometres annually. It is important to obtain this year's rate from the ATO or your CPA Australia-registered tax agent as the allowable rate for such claims changes annually. These claims must be based on reasonable estimates.

However, the log book method is necessary to claim a deduction for the total car-running expenses if your business travel exceeds 5000 kilometres, .

Contact your CPA Australia-registered tax agent to clarify what accounts for work-related travel and which of the two allowable methods can be better used to optimise your tax position.

Topics: TAX

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