The cents per kilometre method is a straightforward way Australians can claim car expenses for work-related travel on their tax returns. The ATO sets a fixed rate per kilometre (usually around 72 cents, but it can vary), which you multiply by the number of business kilometres driven, up to a limit of 5,000 km per year. It's a lazy accountant's dream—no need to keep detailed receipts, just a logbook or diary of your kilometres.
This method is simple but can shortchange you if your actual expenses are higher. For precise deductions, the logbook method might be better, but it requires more effort. Check the latest ATO rates as they update annually, and don’t trust every 'tax expert' you meet—ServiceCentral might have the latest info.
12StorageListing your ad only takes a few minutes, and most categories are free.
Post an adA weekly hand-picked round-up of the best bargains, free stuff, and trending listings. No spam, unsubscribe anytime.
Know someone looking to buy or sell something? Send them to Tradingpost, Australia's original marketplace.