How much per km can i claim on tax

If you filed your income tax return using the income year kilometre rates, you can contact us to request a reassessment of your return that will take into account these finalised kilometre rates. Kilometre rates for the income year. The Tier 1 rate is a combination of your vehicle's fixed and running costs. Use the Tier 1 rate for the business portion of the first 14, kilometres travelled by the vehicle in a year.

This includes private use travel. The Tier 2 rate is for running costs only. Use the Tier 2 rate for the business portion of any travel over 14, kilometres in a year.

If you're an employer, you can use Tier 1 and Tier 2 kilometre rates to get a reasonable estimate of costs. These will help when reimbursing an employee who has business-related use of the vehicle. Your employee will need a record showing their business-related use of the vehicle over the income year, such as a logbook.

You then use it to calculate the exempt portion of reimbursement using the kilometre rates we've set. For example, use the Tier 1 rate for the business portion of the first 14, kilometres total travelled by the vehicle in the income year, and then the Tier 2 rates after that.

The ATO may need to see your logbook if they wish to. You may not claim for the purchase price of the car itself, improvement expenditure or any loans you acquired to finance the car purchase.

Your logbook must contain continuous use records for at least 12 weeks. When claiming for fuel and oil, you can choose to use receipts or estimates from odometer readings. The cents per kilometre method no receipts are required For the cents per kilometre method: You calculate your deductions based on the rate of 72 cents per kilometre — the new rate from July You should be recording written evidence of your work-related trips for confirmation of use, such as a journal. You may need to provide written evidence to show how you worked out your business kilometres for example, by producing diary records of work-related trips.

How much fuel can you claim on tax without receipts? Work-related expenses without receipts What about claiming business expenses without receipts? Take control of your finances in the new financial year. When self-employed people use kilometre rates, they do not need to consider GST. Kilometre rates include depreciation. If you use this method, you will not claim a separate depreciation deduction or recovery of depreciation for the vehicle.

You can use kilometre rates to work out allowable expenses for business of a vehicle. You can keep track of the actual costs of running your vehicle and treat these as a business expense. You need to keep accurate records including details of private and work-related expenses. These expenses could be buying petrol, getting a Warrant of Fitness, paying for maintenance, insurance, and parking.

Your records need to show the reasons for all business travel, and the distances of all journeys. Heads up. We're taking you to our old site, where the page you asked for still lives.

Toggle mobile nav. News and events Media releases Updates Newsletters and bulletins Seminars. Tax Technical. Tax Policy. About us.