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# Calculating car expenses prior to 1 July 2015

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

Last updated 27 June 2019

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

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

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

## 12% of original value method

This method is not available after 1 July 2015.

With this method you could claim 12% of the original value of your car, up to the 'car limit' (which was \$57,466 for 2014–15).

If you bought the car you could claim 12% of the purchase price. If you leased the car you could claim 12% of its market value at the time you started leasing it.

Under this method:

• your car must have travelled more than 5,000 business kilometres during the income year
• you don't need written evidence to show how many kilometres you have travelled, but you must be able to show us how you worked out your business kilometres
• you can't claim a separate deduction for your car’s depreciation.
Start of example

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 after 1 July 2015.

With this method you could 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 of ownership or leasing in the income year
• the car’s engine capacity, make, model and registration number
Start of example

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.

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

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