[danieljf]

Hi MyRideTrac Australia drivers can claim a flat rate p/km deduction up to a maximum of 5000km

https://www.ato.gov.au/Individuals/...aim/Vehicle-and-travel-expenses/Car-expenses/

Just to confirm, we can claim 66c per kilometre up to 5000km for the whole tax year? So essentially, we can all claim $3300 if we have driven over 5000km for Uber?

 

[danieljf]

Correct..... BUT that flat rate claim, means you forgo claiming rego/insurance/fuel/car maintenance costs etc. You still need a log book to claim to show the business kms being claimed either way.

Its basically a nice and easy way for standard tax people who only travel a short distance a year for 'business' to claim the kms. Otherwise they would have to add up all the car costs and only claim say 2% of them etc. Lots of work for little gain.

So its one OR the other method.

So if you only started driving this year, you might be better to claim the flat rate, than the the prorate rate.

Thanks for the info. I'm typically quite good with this stuff but a little confused on this. I have been driving since Sept 2015 and for most of it part-time. I have driven way over 5000km. Are you saying that I can only claim 60c x 5000 and claim no other expenses or claim expenses that could amount to more than 60c x 5000 and then not claim the km allowance?

 

[danieljf]

I guess I'm just after Lehman terms. I have insurance/rego/fuel/car maintenance to claim as well.

 

[danieljf]

Might be time to talk to a accountant, don't go solely on strangers on the internet!

Correct, if you claim the km 60c rate, then NO other CAR EXPENSES, like Rego/insurance/main etc can be claimed.

Correct. but this method, you add up all expenses (rego, insurance, fuel, main etc), then work out your %of business use ie you did 50,000kms and of that 25,000kms was for Uber. Your business % is 50%. So you can then claim 50% of your expenses as a deduction. This is what you claim.

As I said, its ONE method OR the other method.

The up to 5000kms method is for people who don't travel much. The 60c/km deduction is to cover all costs of running the car. Its for people who do the odd work trip and can claim the kms. This method saves them keeping a log bog for the entire year, and then working out the business % and adding up all expenses etc and doing a deduction that way. They only need to keep a log book for the times they drive for work.

So basically, you can get $3000 tax deduction write off, via the 5000kms method, which may be better off for some people, even if you travelled 6-7000kms for the year, depending on your business usage % and the amount you spent etc.

Yes, I'll be seeing an accountant, just any opportunity that I can gain knowledge I will take up. I appreciate you giving me this information.

Do you know how much of rego/insurance/fuel/maintenance etc. we can claim? Is it a certain amount per dollar or a percentage? Am I right to think that claiming a portion of those costs could outweigh the 60c/km method (most likely the case for me as I've probably driver about 15000km).

 

[danieljf]

As I said, its a % of the business KMs you do vs personal ones.

So if you did 50,000kms in your car last year, and 25,000kms was for 'business'. Then you can claim 50% of the cost.

the 60c/km @ 5000kms will give you a $3k deduction. So yes, going down the business % claim path might be better.

If you have done 15,000kms for Business, you need to know how many you did in the year total. If you travelled 20,000km in the year, then you can write off 75% of the rego/insurance/fuel/maintenance costs as a deduction, which will most likely be more than $3000.

If you did 60,000kms in the year, then its only 25% write off etc.

Thanks mate, that's a lot of help. Sometimes doing your own tax seems quite easy and then other times it doesn't!