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. See examples at ATO website.
If you receive an allowance from your employer for car expenses, it is assessable income and the allowance must be included on your tax return.
There are two methods for claiming work related car expenses:
1. Cent per KM method, and
2. Logbook method
If you use the cents per km method, the set rate of deduction is 0.66 cents per km for all vehicles. You cannot claim annually more than 5000 KM.
If you using logbook method, ensure following steps for logbook maintaining:
1. Take an odometer reading for your car at 1 July each year.
2. logbook needs to be kept for 12 consecutive weeks, which is be relied upon for 5 years.
3. You only need to record one entry in your logbook for consecutive trips.
4. Enter work-related journeys in your log book. Not every journey. All journeys not recorded in the log book are private in nature.
5. You don’t need to keep petrol receipts. Get vehicles fuel consumption rating & the average price of petrol in your capital city. (Business KM travelled / 100) * Fuel consumption * Average petrol price = Petrol expense.
The information discussed should not be relied upon as specific professional advice. Please contact us to obtain specific advice in relation to your particular situation.