How can I claim car travel?

In order to claim car travel in your personal Tax Return:-

• You (or your partner) must own the car.
• You must have undertaken a trip for either your business or your employer.

You can claim under two methods:-

• Log book, or
• Cents per kilometre

Tip

You can use a log book kept for three months in the current year or in the last four years (provided the pattern of travel hasn’t changed significantly).

Tip

You must have a properly kept log book.  You can do so by buying one in a stationers or you can access an electronic one form our firms app.

Tip

As old school as it may seem, it is best to keep a paper log book.

Throw it on the dash so you can see it when you get in the car (and get out).

I can’t tell you the number of times a client has told me they started an app log book but kept forgetting to record trips.  End result?  Either have to revert to a lower cents per km claim (see below) or endured the frustration of having to start a new log.

Tip

If you are wanting to claim under the log book method, you will need to keep other records other than the look book.  Click here to see the required documents.

Tip

You can claim 88 cents per kilometre under the cents per kilometre method for up to 5,000 work/business strips.  This means you can still claim 5,000 km where you travel say 5,500km.  Some people choose to do so as it gives them a better claim than under a log book.  All you need is a reliable estimate of all trips undertaken during the year.

Want to know what works best for you

Call us.  We even have a salary sacrifice calculator so we work out the best way to package up a work car and legally minimise the Fringe Benefits Tax.

At MRS, we will spend today planning for your success.