Wednesday, 17 July 2013

Tax tips, part 3: work-related car expenses

Work-related car expenses get entered into section D1 on your tax return.  This is a reasonably complicated exercise the first time you have to do it, but over time it becomes pretty straightforward.

What you can claim

Work-related car expenses are expenses you incur in the course of performing your job.

You are able to claim the cost of 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 started your work at home and travelled 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)