Car expenses | 2023 Gotax

Car expenses; Log Book method v Cents per kilometre method

The Car Log Book Method

The logbook method requires you to keep a record of your car expenses and the percentage of business use for your car. For example, if you drove 10,000 km in total and 6,000 km were for business purposes, your business use percentage would be 60%. You can then claim 60% of your actual car expenses, such as fuel, repairs, insurance, registration and depreciation.

The Car Cents per Kilometre Method

The cents per kilometre method allows you to claim a set rate of 78 cents per kilometre for up to 5,000 business kilometres per car. You don’t need to keep receipts, but you need to be able to show how you calculated your business kilometres. For example, if you drove 4,000 km for business purposes, you can claim $3,120 (4,000km x 0.78 cents) as a deduction.

You can choose the option that gets the best refund for you.

You can choose the method that gives you the best outcome or is more convenient for you. You can also change methods from year to year. However, you must keep a logbook for at least 12 weeks every five years if you use the logbook method.  This assumes that your car usage from year to year is consistent.  If for example you changed jobs and the car usage significantly increased or decreased then you would to create a new 12 week log book.

And if you're scratching to find a log book, then you need to get on to the Gotax Deduction Grabber App, scan the QR code and your in business.

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