Motor vehicle expenses
Every business owner would ask: Can I claim my petrol? Or repairs of my car?
This information will help you when claiming a deduction for motor vehicle expenses for your business
– The way to calculate your claim depends on your business structure.
– If you change your business structure, your entitlements and obligations may change.
– You must apportion your expenses between business and private use.
– You must keep records for five years to prove your expenses.
Types of motor vehicles:
The type of motor vehicle you drive can affect how you calculate your claim. A motor vehicle is either a car or an ‘other vehicle’.
Car
A ‘car’ is a motor vehicle that is designed to carry:
– a load of less than one tonne, and
– fewer than nine passengers.
Many four-wheel drives and some utes are classed as cars.
Other vehicle
If your motor vehicle is not a car it’s an ‘other vehicle’. Other vehicles include:
– motorcycles
– minivans that can carry nine or more passengers
– utes or panel vans designed to carry loads of one tonne or more.
Expenses incurred in running a ute are not automatically tax deductible; you need to use the ute in your business and claim the business portion only.
Types of expenses
Common types of motor vehicle expenses you can claim include:
- fuel and oil
- repairs and servicing
- interest on a motor vehicle loan
- lease payments
- insurance
- registration
- depreciation (decline in value) of the vehicle.
Need more help?
+61 2 8011 4699
