If you use your car for work purposes, the ATO will let you make a claim on your tax return for some car-related expenses. (Note: You can only claim expenses for a car you own).
Generally speaking, if you use your car a lot for work, the car logbook method will get you a bigger tax refund than the cents per kilometre method.
Why? Because claiming using a logbook allows you to claim a percentage of all of your car expenses (fuel, registration, maintenance, interest on loans etc.) The other method of claiming car expenses (cents per kilometre) allows you to claim a set rate for fuel only and only up to 5000kms for the year. This means you miss out of claiming for all other car related expenses.
However, the log book method must be a record of 12 weeks of all of the kilometres your car travels, noting the business and private percentage and this log book must have been kept for 12 weeks in this financial year in order to claim this method. You must also have kept all car related expense receipts and records (Hint: our free Mirandas App has a log book and a receipt manager to make this easier for you).
If you have not kept a valid log book during this financial year, you can not claim the log book method for your work related car expenses
As always, if you require assistance with booking an appointment please do not hesitate to contact us via the details below and we will be happy to assist
Take care Vanessa and the team at Mirandas
MIRANDA ACCOUNTING SERVICES 8/263 – 271 Wells Road, Chelsea Heights Vic 3196 PO Box 476, Patterson Lakes VIC 3197 Tel 03 9773 3647 www.mirandas.com.au