Claiming Car Expenses - Set Rate per Kilometre Method

(last updated 27/03/2014)

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• E-tax Return Checklist 
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This method of claiming car expenses is by far the most common way we claim for car expenses. Althought it sometimes results in claiming less than may be possible if records were kept, it is easy to calculate and no receipts or records are required.

 For details and a checklist on other methods of claiming car expenses see these posts:

• 12% actual cost method
• 1/3 Actual expenses
• log book method

You can use this method to claim up to a maximum of 5,000 business kilometres per car per year, even if you have travelled more than 5,000 business kilometres. For example, if you travelled 5,085 business kilometres, you can only claim the cost of travelling 5,000 kilometres with this method. You cannot claim for the extra 85 kilometres.

As mentioned, you do not need written evidence but you may need to be able to show how you estimated your business kilometres.

A typical example is where a trades person transports bulky tools and equipment to a work site.

Rates for the 2014 financial year:

Rates per business kilometre
Engine capacity		Cents per kilometre
Ordinary engine	Rotary engine
1.6 litre (1,600cc) or less	0.8 litre (800cc) or less	65 cents
1.601-2.6 litre (1,601-2,600cc)	0.801-1.3 litre (801-1,300cc)	76 cents
2.601 litre (2,601cc) and over	1.301 litre (1,301cc) and over	77 cents

 

Rates for the 2013 financial year: 

Rates per business kilometre
Engine capacity		Cents per kilometre
Ordinary engine	Rotary engine
1.6 litre (1,600cc) or less	0.8 litre (800cc) or less	63 cents
1.601-2.6 litre (1,601-2,600cc)	0.801-1.3 litre (801-1,300cc)	74 cents
2.601 litre (2,601cc) and over	1.301 litre (1,301cc) and over	75 cents

FREE fact sheet on claiming car expenses ==> Claiming a Deduction for Car Expenses.

If you receive an allowance from your employer for car expenses it must be included as assessable income. See this post for a checklist of eTax and Assessable Income.

E-tax Return

See these posts with tips, calculators and checklists to help you prepare your eTax Return (and get a better refund) with less hassle:

• checklist of eTax and Assessable Income 
• checklist of eTax and Allowable Deductions

For help with your eTax return see our eTax Return Checklist.

Web Based Tax Return App:

A benefit of using eZtax, our web based tax return app, is we have the genuine online tools, knowledge and experience to get the best tax refund for our clients, making it easy to complete your annual tax return online.

Our Web Based Tax Return App will step you through all the necessary questions to increase your  tax refund and take into account all relevant tax deductions and tax offsets. Try it now. Its FREE to get started!