To be able to claim car expenses:

  1. Your vehicle must meet the definition of a car
  2. You must own or be leasing the car
  3. The expenses must be work related
  4. You must have spent the money and not be reimbursed by your employer
  5. Must have the required records

Please note, if you are leasing your car under a salary sacrifice or novated lease arrangement you do not own the car and therefore can not claim expenses.

There are 2 methods to calculate deductions for car expenses.

  1. Cents per kilometre method

This claim is based upon a reasonable estimate and limited to 5,000 kilometres. The business kilometres are then multiplied by the rate determined by the engine capacity.

      2. Log book

To claim this method you must have a valid logbook that is less than 5 years old and covers a 12 week period. You need to substantiate all expenses.  Using the method your claim is the business percentage as per your log book of motor vehicle expenses that you can substantiate.

Please call our Melbourne office to find out which of the above methods is right for you.