can I claim travel to work on tax

Claiming vehicle expenses, such as registration and insurance on your tax refund is allowed under the following circumstances. If you use your private car (vehicle) for business related purposes, then you are able to claim a proportion of the running costs of that car as a tax deduction.

It is important to note from the outset that the tax office have determined that travelling to and from home to your place of business is generally not regarded as business related travel, and therefore can not be claimed as a deduction.

Visit our How It Works page and follow the steps to lodge your tax online now.

However, if you have a job that entails you having to carry tools or heavy machinery to your place of business from home, then that travel is regarded as business related travel. Other types of business related travel include travelling to customers’ premises, to work sites, or travelling between jobs, if you have more than one job.

travel to and from home claims on tax petrol and travel costs deduction tax return

claiming of personal vehicle running costs on tax

There are 2 main methods of claiming work related travel:

The first is the ‘cents per kilometre method’, however this only applies where your work related travel is 5000 kilometres or less.

The tax department have determined certain rates that you can claim depending on the engine capacity of your car.
With this method, it is sufficient to keep diary evidence of the number of kilometers that you travel, which are work related.

Can I Claim All Of My Travel To Work On Tax

The second method is the ‘log book method’. To claim expenses using this method, you must keep a log book for 3 months, and record all of the kilometres that you travel, separated between work related and private. At the end of the 3 months, you need to calculate what percentage of your overall travel is work related.

At the end of the financial year, this percentage will then be applied to all the costs of running your car such as fuel, oil, registration, insurance, depreciation etc. That amount can then be claimed as vehicle expenses, as a tax deduction.

Visit our How It Works page and follow the steps to lodge your tax online now.

Offsetting Vehicle Expenses

Watch this video for an explanation on the obligations of taxpayers who wish to claim motor vehicle expenses against their taxable income. Learn about the right way to keep records of money spent on cars and trucks as well as maintenance and running costs.

This Audio File Explains Car Expenses and Claiming Them on Tax