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It's a hot topic of conversation at tax time and the question most frequently asked is, 'can I claim a tax deduction if I drive my car to work'!

The answer lies in the detail as there are various scenarios and complexities to claiming. Along with a changed workplace environment as more taxpayers work remotely and from home which bring into play different tax rules. It's therefore not surprising to find Taxpayers can get their claims wrong.

 Yes, you can claim in some circumstances.

• If your travel was partly for work and partly private, it is the general rule that you can only claim for the part related to your work.
• If you use your car or motor vehicle for work-related travel, where you use it in undertaking your work-related duties, other than your trip to and from work, you can claim a deduction. 
• If your home was a base of employment. that is, you started your work at home and travelled to a workplace to continue your work for the same employer. These rules can be 'tricky!' 

You can find out more by visiting the ATO website 

Or speak with Blackburn Accounting to help you with your claim. 

Eligibility to claim: How you work out your deduction will depend on if you are using,

• A car your own, lease, or hire (under hire purchase agreement)
• someone else's car
• a motor vehicle, that is not defined as a car.

Note: Check details of what the ATO defines as cars and other motor vehicles.

• You can only claim work-related motor vehicle expenses you incur

• You can't claim expenses that relate to your private use of your vehicle
• Can’t claim for expenses if you were reimbursed by your employer for the same costs.

There are two methods for claiming car expense deductions;

• Cents per kilometre
• Logbook method

Importantly keep your receipts and records for all expenses relating to your car, such as;

• Registration
• Insurance
• Fuel
• Servicing

The ATO website provides full details on Motor Vehicle and Car Expenses. 

Need help speak with Blackburn Accounting, we are tax professionals.