'Work-related car expenses' and 'work-related travel expenses' are expenses you incur in the course of performing your job as an employee. You claim deductions for them at Work-related car expenses and Work-related travel expenses.
Complete Work-related car expenses for work-related expenses for a car you owned, leased or hired under a hire purchase agreement (and the expense is not a travel expense which you show at Work-related travel expenses).
Complete Work-related travel expenses for the following work-related car and travel expenses:
- expenses for vehicles with a carrying capacity of one tonne or more, or nine or more passengers (for example, utility trucks and panel vans)
- expenses for motorcycles
- short-term car hire
- public transport fares
- bridge and road tolls
- parking fees
- taxi fares
- petrol, oil and repair costs relating to work-related travel you did in a car owned or leased by someone else
- meal, accommodation and incidental expenses you incurred while away overnight for work.
The deductions include the cost of trips you undertake in the course of performing your work duties, which may also include trips between your home and your workplace if:
- you used your car because you had to carry bulky tools or equipment that you used for work and could not leave at your workplace (for example, an extension ladder or cello)
- your home was a base of employment (that is, you were required to start your work at home and travel to a workplace to continue your work for the same employer)
- you had shifting places of employment (that is, you regularly worked at more than one site each day before returning home).
Work-related car and travel expenses also include the cost of trips:
- between two separate places of employment when you have a second job, providing one of those places is not your home
- from your normal workplace or your home to an alternative workplace that is not a regular workplace (for example, a client’s premises) while you are on duty
- from an alternative workplace that is not a regular workplace back to your normal workplace or directly home.
If the travel was partly private, you can claim only the work-related part.
You cannot claim normal trips between your home and your workplace, even if:
- you did minor work-related tasks at home or between home and your workplace
- you travelled between your home and workplace more than once a day
- you were on call
- there was no public transport near work
- you worked outside normal business hours
- your home was a place where you ran your own business and you travelled directly to a place of employment where you worked for somebody else.
Award transport payments
If you received an award transport payment that was paid under an industrial law or award in force on 29 October 1986, see Claiming a deduction for car expenses - award transport payments.
Claiming a deduction for car expenses - award transport payments
Award transport payments are allowances covering either transport expenses or car-expense reimbursements that are paid under an industrial law or award that was in force on 29 October 1986. The car-expense reimbursement is calculated in respect of a certain number of kilometres.
Your union or employer can tell you how much the amount was as at 29 October 1986 - that is, the award amount.
Award transport payments are assessable income and you must include any payments as income on your tax return. If you have incurred:
- transport expenses covered by these payments, you claim a deduction at Work-related travel expenses
- car expenses covered by these payments, you claim your deduction at either Work-related car expenses or Work-related travel expenses.
If your claim for work-related transport or car expenses is no more than the award amount, make the claim at Work-related travel expenses on your tax return. You do not need written evidence.
If you also have a claim for any additional kilometres not covered by the award transport payment, you can make the claim at Work-related car expenses on your tax return but you can only use either the:
- logbook method (you will need written evidence)
- cents per kilometre method.
Claiming at Work-related travel expenses
If you are claiming no more than the award amount for transport expenses, make the claim at Work-related travel expenses (you do not need written evidence).
For your work-related car expenses claim, kilometres that are covered by the award transport payment and claimed at Work-related travel expenses on your tax return are not counted as business kilometres under either the 'cents per kilometre' or 'logbook' method. However, they are counted as part of the total kilometres travelled for the 'logbook' method. If you do not know how many business kilometres relate to your award transport payment, you can make a reasonable estimate.
Claiming at Work-related car expenses
Alternatively, you may choose not to limit any part of your claim for work-related car expenses to the award amount. If this is the case, make your claim at Work-related car expenses on your tax return (and do not claim car expenses covered by your award transport payment at Work-related travel expenses). When making your claim at Work-related car expenses on your tax return you can use either of the two methods to calculate your car expenses. Treat any work-related kilometres covered by the award transport payment as business kilometres. You will need to provide the written evidence required by the particular method you select.
If you need help applying this information to your own situation, phone us on 13 28 61.
These myTax 2018 instructions are about deductions for car expenses when you receive award transport payments.