• DK Accounting & Advisory

What can I claim for my Car?

Updated: Jun 12, 2021

Don’t get lost on the journey and miss out on your tax deduction!

Have you had any work-related travel over the past financial year? Let’s make sure you have your ducks in a row to make a successful claim!

You will need a record of all work-related kilometres that you have driven over this period.  What represents work-related travel is a very complicated area of tax legislation, but in most cases, it can be very simple. For a kilometre to be tax deductible, it needs to relate to travel between two locations of work-related activity. For example, if you work in Launceston and drive to a work-related training session in Hobart, the kilometres that you have travelled on that trip are tax deductible. If you live in Riverside and work in Launceston, your daily commute to work is not tax deductible.

When can I claim home-to-work travel

The only time that travel from home to work can be counted toward work-related kilometres, is if you have an occupation that required tools that you must transport to and from work each day. For example, if you are a music teacher with a cello and drum kit or a handy man with a toolkit. However, this loophole is not available to individuals that have a secure lockup at work in which tools can be stored.

Parked towing capacity

To all those tradies out there that have vehicles with more grunt: if you have a rig capable of carrying a load of two tonnes or more, you cannot use the simple kilometre-based method to make your claim. Not sure if this applies to you? The towing capacity of your vehicle should be in your car manual – or just Google your make and model. You will need to have a record of the actual running expenses of your motor vehicle, such as fuel, registration, insurance, repairs, etc, as well as having kept a logbook for a 6-week period to establish the business percentage use of your vehicle.

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