Work-related car expenses

You may be able to deduct the work-related car expenses that your employer allowance covers for car expenses. You must include assessable income on your tax return.

 

Motor Vehicles

ATO defines a car as “a motor vehicle designed to carry a load of less than one tonne and less than nine passengers.” Expenses for vehicles that do not qualify as a car, including motorcycles, fall under work-related travel expenses.

 

You can claim car expenses for your actual car and costs incurred with a borrowed car.

 

Most of the driving you do between home and work is not deductible. Otherwise, in certain circumstances, you may be able to claim this travel, if you are transporting bulk tools or equipment, for example, or driving between two separate places of employment.

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