Driving to collect supplies, or from worksite to worksite? This travel in your car is claimable!

Keep a record of how many kilometres you drive at work, and you may be able to claim a cents per kilometre rate, depending on how many km you drove.

How do I claim a cents per kilometre rate?

There are two ways you can calculate your deduction

• cents per kilometre – up to 5,000 business kilometres per year
• logbook method – about three months of detailed records showing the business/ work-use percentage of your expenses

You can only claim work-related travel expenses if:

• you spent the money yourself and were not reimbursed by your employer
• your travel was directly related to earning your income
• you kept a record of your travel, such as receipts or diary entries.

The ATO has more information on their website.  

For example, if you drove up to 5,000 km for work, you can claim a rate of 78 cents per kilometre (for 2022/2023).  If you drive more than 5000kms, then you are limited to claim based on this.

Rates are reviewed regularly and published on the ATO website. The rate is:

• 78 cents per kilometre for 2022–23
• 72 cents per kilometre for 2020–21 and 2021–22
• 68 cents per kilometre for 2018–19 and 2019–20
• 66 cents per kilometre for 2017–18, 2016–17 and 2015–16.

We find when we do the maths that generally if you drive up to 10,000kms, then the c/km method is the easiest way to claim your vehicle costs.

If you do more than 10,000kms per year, then a log book showing your business km vs personal, as well as keeping all of the costs of your vehicle will generally give you a better claim.

If your travel is for more than one employer in the year, you need to have a letter from each of your employers stating how many kilometres you travelled for them during the tax year.

What about travel expenses?

If you are travelling interstate or internationally for work, you can also claim accommodation and meal expenses following the ATO's guidelines.

So, you're ready to sort out your tax, great!

Unless you're a tax agent or an accountant this is probably the most boring thing you'll do all year.

But, it's also one of the most important things you can do!

If you're not sure where to start, don't stress! We're here to get you on the right track!

Book a meeting with us now to prepare your tax and claim your kilometres on your tax return.