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Claiming your 'Car' as a Deduction

6th August 2019

Claiming your “Car” as a deduction 

If you use your car for work purposes you may be able to submit a claim.

There are a few methods you can use:

Cents per kilometre method: You can claim a maximum of 5,000
business kilometres per car. The rate per kilometre (66 cents
in 2017-18 and 68 cents in 2018-19) takes into account your
car running expenses, including depreciation. You can’t make a
separate claim for depreciation of the car’s value.

You don’t need written evidence, but you must be able to show
how you worked out your business kilometres (for example,
calendar or diary records).

For claims above 5,000 kilometres you must use the logbook
method or actual costs to claim the entire amount.

Logbook method: You can claim the business-use percentage of
each car expense, based on logbook records. You must record:

  • when the logbook period begins and ends
  • the car’s odometer reading at the start and end of the logbook period

Details of each journey including:

  • start date and finishing date
  • odometer readings at the start and end
  • kilometres travelled
  • reason for the journey.

You must keep the logbook for a period (at least 12 continuous
weeks) that is representative of your travel throughout the year.
You can then use this for five years.
Work out the percentage of business travel from your logbook and
use this to claim your business-related car expenses. You can’t
claim capital costs such as the purchase price of the car but you
can claim this as depreciation.

Please contact Joe if you have any questions.