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  • Calculating car expenses prior to 1 July 2015

    This information lists the methods you can use when calculating your car expenses before 1 July 2015.

    For 2014-15 and earlier income years, there are four different methods for claiming work-related car expenses.

    If you are claiming up to 5,000 business kilometres you can use either the:

    • cents per kilometre method
    • logbook method.

    If you are claiming for more than 5,000 business kilometres you can use either the:

    • logbook method
    • 12% of original value method
    • one-third of actual expenses method.

    From 1 July 2015, you can use only the cents per kilometre and logbook method.

    On this page:

    See also:

    12% of original value method

    This method is not available from 1 July 2015.

    If you're using the 12% of original value method for prior income years, you can claim 12% of the original value of your car, subject to the car limit ($57,466 for 2014-15).

    If you bought the car you could claim 12% of the cost. If you leased the car you could claim 12% of its market value from the first time it was leased.

    Under this method:

    • your car must have travelled more than 5,000 business kilometres during the income year
    • you do not need written evidence to show how many kilometres you have travelled, but we may ask you to show how you worked out your business kilometres.
    • you cannot claim a separate deduction for your car’s depreciation.

    Example: using the 12% original value method

    Raji’s vehicle cost $20,000. She had the vehicle for the full year and met the requirements to make a claim under this method. Raji worked out she could claim $2,400 for her vehicle expenses, as follows: 12% × $20,000 = $2,400.

    End of example

    One-third of actual expenses method

    This method is not available from 1 July 2015.

    If you're using the one-third of actual expenses method for prior income year you can claim one-third of your car expenses.

    Under this method:

    • your car must have travelled more than 5,000 business kilometres during the income year
    • you must have written evidence of your fuel and oil costs, or odometer readings on which your estimates are based
    • you must have written evidence of all your other car expenses.

    You must also keep records that show:

    • your car’s odometer readings at the start and end of the period during which you owned or leased it during the income year
    • the car’s engine capacity, make, model and registration number
    • how you worked out your business kilometres and any reasonable estimate you made.

    Example : using the one-third of actual expenses method

    Kosta’s vehicle expenses totalled $9,000 for the income year. These costs were for:

    • fuel and oil
    • registration and insurance
    • interest on a loan to buy the vehicle
    • repairs and maintenance
    • depreciation or lease payments.

    Kosta met all the other requirements for claiming under this method. He worked out he could claim $3,000, as follows:

    • $9,000 ÷ 3 = $3,000
    End of example
      Last modified: 03 Apr 2017QC 33719