Car expense deductions simplified
14th June 2016 | News
From 1 July 2015 – two methods have been applied as the government has simplified the car expense deductions for 2015–16 and future income years. From 1 July 2015, the one-third of actual expenses method and 12% of original value method have been abolished.
The two methods available from 1 July 2015 are: cents per kilometre method (with some changes) and the logbook method (with no change to its rules). The cents per kilometre method is available for use with some changes.
Separate rates based on the size of the engine are no longer available from 1 July 2015.
Under the revised method, individuals use 66 cents per kilometre for all motor vehicles for the 2015–16 income year.
The Commissioner of Taxation will determine the rate for future income years.
Your claim is based on 66 cents per kilometre for 2015–16 income year you can claim a maximum of 5,000 business kilometres per car.