Motor Vehicle Tax Deductions (Australia)

If you use your car for work (not private travel), you may be able to claim deductions. Two main methods apply:

1. Cents per kilometre method

• Claim 88c/km (from 1 July 2024), up to 5,000 km per car.
  
  
• No logbook needed, but you must show how the kms were work-related.  Eg Diary records.
  
  
• Covers all car running costs (fuel, rego, servicing, depreciation).
  
  

2. Logbook method

• Complete a log book to track your car use over 12 continuous weeks to establish % of work use. (This % can be used for 5 years, assume car usage does not change)
  
  
• Claim actual costs based on that %:
  
  
• Petrol, 
• Insurance, 
• Registration, 
• Repairs & servicing, 
• Loan interest or Leasing, 
• Depreciation
  
  
• Must keep receipts and records.
  
  
• Electric Cars, receipts from commercial charging stations. (They also have special rules for charging at home)

You can't claim:

• Commuting from home to work (unless carrying tools or working at multiple sites).
  
  
• Any private portion of use.

Head to our website today to find out how we can help you manage your motor vehicle deductions/

https://www.keytaxsolutions.com.au/