Changes to work related car expense deductions

16 Jul 16

Changes to work related car expense deductions

For the 2015/16 income year and later income years there are currently two methods, the cents per kilometre method (for up to 5,000 business kilometers travelled) and the log book method that taxpayers may choose to claim work related car expense deductions.

Previously, there were four methods. The 12% of original value method and the one-third of actual expenses method have been repealed effective 1 July 2015.

Further, from 1 July 2015 there will be a single cents per kilometre rate of deduction determined by the Commissioner.

For the 2015/16 income year the single rate at deduction determined by the Commissioner is 66 cents per kilometre. Maintaining detailed records may assist in maximising deductions.