Teachers 2010-11

Car expenses

Did you have any car expenses relating to your work as an employee?

There are four ways to work out your car expenses. Question D1 in TaxPack explains the methods and tells you what records you need to prove your claim.

Note Include the work-related cost of using taxis, short-term car hire, parking fees and tolls at item D2 on your tax return, see Travel expenses. Show the cost of travel for self-education at item D4 on your tax return, see Self-education expenses.

Remember, if your employer reimbursed your car expenses calculated by reference to the distance travelled by the car, include the amount you received at item 2 on your tax return, even if you cannot claim a deduction for these expenses.

Types of travel for which you can claim car expenses

You can claim a deduction for the cost of using your car for work-related travel if:

• you travel directly between two separate workplaces because you have two different employers (for example, you have a second job)
• you travel for work-related purposes from your normal workplace to an alternative workplace and back to your normal workplace or directly home (for example, if you need to go to a regional meeting)
• you travel between two workplaces or between a workplace and a place of business (for example, between two schools).

You cannot claim a deduction for the cost of travelling to another workplace for a social function.

You can claim a deduction for the cost of using your car to travel between home and work if:

• you have to carry bulky tools or equipment that you use for work and there is no secure area for storing your tools or equipment at work
• your home is a base of employment (you start your work at home and travel to a workplace to continue the work)
• you travel from your home to an alternative workplace for work activities and then to your normal workplace or directly home (for example, when you have to go to a work conference).

You cannot claim a deduction for the cost of using your car to travel between your home and work:

• if the travel is a normal trip between your home and your workplace; it is a private expense even if you do small tasks on your way to or from work such as picking up stationery supplies, or
• just because the travel is outside normal employment hours, you are on call or there is no public transport available.

Motor vehicle provided by your employer or any other person

You cannot claim a deduction for car expenses if your employer or any other person provides a car for you and you do not pay for any of the running costs.

You cannot claim a deduction for any expenses you incur for the direct operation of a car that your employer provides and that you or your relatives use privately at any time, even if the expenses are work related. Such expenses form part of the valuation of the car for fringe benefits tax purposes.

Sections within Work-related deductions

• Car expenses
• Travel expenses
• Clothing expenses
• Self-education expenses
• Other expenses