Award transport payments
If you receive an allowance from your employer for transport expenses or car expenses and it is paid to you under an award, it is assessable income and must be included on your tax return. You may also 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 because this affects whether you need written evidence to support your claim.
If you choose to claim no more 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 additional kilometres in your car and they are not covered by the award transport payment, you can make the claim on your tax return. You can use the logbook method (you will need written evidence) or the cents per kilometre method.
If you are already claiming kilometres under the award transport payment, you can't also count them as business kilometres under either the cents per kilometre or logbook method. However, they are counted 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 any of the four 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 selecting when calculating your deduction.
If you receive an award transport payment from your employer, you may be able to claim a deduction for work-related transport expenses covered by these payments.