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  • Award transport payments

    If you receive an allowance from your employer for transport expenses or car expenses and it's paid to you under an award, it's assessable income and you must include it on your tax return. You may be able to claim a deduction for work-related transport expenses covered by these payments.

    To work out how much you can claim, you need to know the award amount as this affects whether you will need written evidence to support your claim.

    If you claim less than the award amount, you don't need written evidence.

    If you want to claim more, you will need written evidence for the whole of your claim.

    Car expense reimbursement

    The award transport payment sets a 'car expense reimbursement' amount for a certain number of kilometres. If you travel more kilometres than the limit, they aren't covered by the award transport payment. You can claim the extra kilometres on your tax return and use either the:

    • logbook method (you will need written evidence)
    • cents per kilometre method.

    If you're already claiming kilometres under the award transport payment, you can't count them as business kilometres under either the cents per kilometre or logbook method. However, you will count them as part of the total kilometres travelled for the logbook method.

    Alternatively, you can choose not to link any part of your claim for work-related car expenses to the award amount. If this is the case, when you make your claim on your tax return, don't claim car expenses covered by your award transport payment. You can then use either of the two methods to calculate your car expenses.

    Treat any work-related kilometres covered as business kilometres. You will need to provide the written evidence required by the method you select when calculating your deduction.

    See also:

    Last modified: 15 Jun 2020QC 31950