As June 30 approaches, it is worth thinking about your vehicle expenses. If you use your car for work, there are legitimate tax deductions you should be aware of. And even if you do not, EOFY is a natural milestone to catch up on overdue maintenance.
What Can You Claim?
If you use your vehicle for work-related travel (not commuting to and from your regular workplace), you may be able to claim:
- Fuel and oil costs
- Repairs and servicing
- Registration and insurance
- Depreciation
- Interest on a car loan (work-use portion)
The Two Methods
Cents per kilometre: Claim a set rate per km (currently 85 cents) for up to 5,000 km. Simple and requires no receipts for fuel and oil, but you still need to show how you calculated the distance.
Logbook method: Keep a logbook for at least 12 consecutive weeks showing every trip. Your work-use percentage then applies to all car expenses. This method usually gives a higher deduction for people who drive a lot for work.
Keep Your Receipts
Whichever method you use, keep receipts for repairs and servicing. Digital copies are fine — just make sure they show the date, amount, and what the work was for.
EOFY Service Special
End of financial year is the perfect time to get your car serviced:
- The expense falls in this financial year for your tax return
- It sets you up for reliable driving through winter
- You start the new financial year with a well-maintained vehicle
Disclaimer: This is general information only, not tax advice. Consult your accountant or the ATO for advice specific to your situation.
Book your EOFY service at Heatherdale Automotive before June 30.