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Deductions for business
The amount of motor vehicle expenses you can claim depends on your business structure.
If you operate your business as a company or trust, you can claim a full deduction for expenses you incur in running a motor vehicle that your company or trust leases or owns. If you, or other company or trust employees (or their associates), use the vehicle for private purposes, you may have to pay fringe benefits tax (FBT). The cost of FBT is also a deduction.
If your income includes personal services income (PSI), and the PSI rules apply, you may be able to claim a deduction for only one car you use for business and private purposes.
Find out more
If you operate your business as a sole trader or a partnership that includes at least one individual, you can claim a:
Duration 3m:30s. A transcript of Business deductions – Motor vehicle expenses: Tax basics for small business is also available.
This video explains when you can claim a deduction for motor vehicle expenses in your business and how to work out your claim.
If you operate your business as a sole trader or a partnership that includes at least one individual, there are four methods you can use to work out the amount you can claim.
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