business car expenses Page 3

Business car expenses in Australia boil down to two main claim methods: the cents-per-kilometre shortcut, or the logbook method for a proper business-use percentage. Eligible costs typically include fuel, servicing, tyres, registration, insurance, loan interest or lease payments, cleaning, tolls and parking, plus depreciation on the car (subject to the ATO’s annual “car limit”). Private use isn’t deductible, so apportion everything by your logbook and keep receipts like a dragon sitting on a very boring treasure hoard. GST-registered? You may claim input tax credits on the business portion of running costs and the purchase price (again, subject to limits). If the car is provided to an employee or yourself as a benefit, fringe benefits tax can turn up uninvited, so plan accordingly. Keep records for at least five years and update the logbook every five; and if in doubt, get advice from a registered tax agent before the ATO does its curious owl impression.