Motor vehicle claims

The ATO is making work-related motor vehicle expenses a focus again because of the level of claims made in the prior year.  It is also concerned at the number of claims made, one in five, at exactly the maximum limit of 5,000 kilometres, where no substantiation is required under the cents/kilometre method.

No substantiation or receipts are required in support of such claims, however you do need to be able to demonstrate how the number of kilometres travelled for work purposes was worked out!

And remember, generally, trips between home and work cannot be claimed (they are considered private in nature) unless, for example, travel is from work site to work site or it is necessary to transport bulky, heavy tools or equipment.

Any motor vehicle expenses reimbursed by an employer can’t be claimed.

Check out the ATO’s nifty little car expenses pdf and save it as a ready reckoner!