We all love getting refunds, money back guarantees, and tax deductions. Most Aussies are not completely aware of what they can apply for their tax deductions to be bigger, especially when it comes to motor vehicles. Not to fret though, as we are here to help you figure out how much you can claim and how to claim it.
You can compute and figure out by thinking about the purpose of each trip you have taken. Your trips to and from work cannot be claimed, but business trips like meetings out of the office can be deductible. Instances such as these can be considered:
Keep a travel logbook for your trips – whether it’s business related or not. This way, you can keep track of your mileage and figure out which trip is actually business related. You can then calculate that number out of your yearly operating costs, and the result will be your motor vehicle tax deduction. It’s also wise to keep odometer readings and receipts, so you can justify what you are claiming.
Math is actually really useful when it comes to these kinds of things. Take your total number of kilometres that you have made in a year (only the ones from your business trips, the ones that you have listed on your log book) and multiply it to a certain number of cents per kilometre. If you want to know more about this, then visit this site for more information.
If you want to know more about motor vehicle tax deductions, then visit the Australian Tax Office’s official website.