Cents per km | Gotax 2023

How to Claim Car Expenses Using the Cents Per Kilometre Method

If you use your car for work, such as visiting clients, delivering goods or travelling between different workplaces, you should be able to claim a tax deduction for the travel if you've tracked it correctly.  Car expenses as a tax deduction are generally a big ticket item, so making sure you have your documentation in order is of utmost importance.

Claiming your car expenses is by using the cents per kilometre method is a simple and easy method that does not require you to keep a lot of records. All you need to do is:

• Determine how many kilometres you travelled in your car for work purposes during the year. You can use a diary, a calendar or an app to help you keep track of your trips. The maximum number of kilometres you can claim is 5,000 per car, per year.
• Track your costs using the Gotax Deduction Grabber App.  It has what you need.  Scan the QR Code...
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• Multiply the number of kilometres by the Australian Taxation Office (ATO) set rate. The rate for the 2022–23 tax year is 78 cents per kilometre. This rate covers all the costs of running your car, such as fuel, registration, servicing, insurance and depreciation.  As this rate is all encompassing, you cannot claim any car costs beyond this.  If you incur lots of car costs as a result of lots or work travel, then to optimise your tax deduction you should run a full log book and record all your costs.
• Using the Gotax tax return system will calculate these tax deductions for you, just supply the number of kilometres.