Guide to claiming deductions

Work-related car expenses

If you receive an allowance from your employer for car expenses, it is assessable income and must be included on your tax return. You may be able to claim a deduction for work-related expenses covered by these payments.

We have provided specific details of what work-related expenses you can claim, based on your occupation or industry - see Deductions for specific industries and occupations.

If you are claiming a deduction for using your own car, it is treated as a car expense.

You are still considered to be the owner or lessee of a car where a family or private arrangement makes you the owner or lessee even though you are not the registered owner - for example, where a family car is given to you as a birthday present and you use it as your own and pay all expenses, even though it is not registered in your name.

A car is a motor vehicle designed to carry a load of less than one tonne and less than nine passengers. The term 'car' does not include a motorcycle or similar vehicle. If you need to claim work-related expenses for using a vehicle other than a car, refer to work-related travel expenses.

Driving between home and work and between workplaces

You are able to claim for driving between your home and your workplace in limited circumstances, such as if you need to carry bulky tools or equipment that you used for work and can't leave it at your workplace . You can also claim for driving between two separate places of employment.

Calculating your deduction

If you can claim a deduction, you can claim running costs, such as fuel and the decline in value of your car.

For more information about decline in value, refer to Work related expenses - decline in value.

There are four methods to claim car expenses. You can choose the method that gives you the largest deduction for any car, and choose different methods for different cars.

The four methods have different record-keeping requirements.

Award transport payments

If you receive an award transport payment from your employer, it is assessable income and must be included on your tax return. You may be able to claim a deduction for work-related transport expenses covered by these payments.

For more information about completing your tax return, refer to: Car and travel expenses D1 - Work-related car expenses.

Claiming deductions - home

Sections within Work-related car expenses

• Driving between home and work and between workplaces
• Calculating your deduction
• Award transport payments