🏠7/43 Balmoral Road Karratha, WA, Australia 6714 ◾ 📧 [email protected] ◾ 📞 08 9185 9400

How to make travelling in your own car claimable

How to make travelling in your own car claimable

prepare for your tax return refund tax deductions Apr 14, 2022

Driving to collect supplies, or from worksite to worksite? This travel in your car is claimable!

Keep a record of how many kilometres you drive at work, and you may be able to claim a cents per kilometre rate, depending on how many km you drove.

How do I claim a cents per kilometre rate?

There are two ways you can calculate your deduction

  • cents per kilometre – up to 5,000 business kilometres (maximum claim of $3,300 for the 2019 tax year)
  • logbook method – about three months of detailed records showing the business/ work-use percentage of your expenses

You can only claim work-related travel expenses if:

  • you spent the money yourself and were not reimbursed by your employer
  • your travel was directly related to earning your income
  • you kept a record of your travel, such as receipts or diary entries.

The ATO has more information on their website.  

For example, if you drove over 5,000 km for work, you can claim a flat rate of 66 cents per kilometre. If you drove less than 5,000 km for work in the year, you can claim a rate of 58 cents per kilometre.

If your travel is for more than one employer in the year, you need to have a letter from each of your employers stating how many kilometres you travelled for them during the tax year.

What about travel expenses?

If you are travelling interstate or internationally for work, you can also claim accommodation and meal expenses following the ATO's guidelines.

So, you're ready to sort out your tax, great!

Unless you're a tax agent or an accountant this is probably the most boring thing you'll do all year.

But, it's also one of the most important things you can do!

If you're not sure where to start, don't stress! We're here to get you on the right track!

Book a meeting with us now to prepare your tax and claim your kilometres on your tax return.

This blog is intended to provide general information only and should not be construed as legal or specific tax advice for your circumstances. It is always best to get advice from a professional before you rely on anything you read on the internet.

We love helping small businesses thrive!
Join our newsletter today and get free business tax tips to help you grow.