I work in a job where I travel a lot of for. I use my own personal car and record all my kilometres travelled for work purposes. My employer pays me for kilometers travelled but it's not all taxable so I dont get taxed on all money earned each fortnight.
For example I may earn $1300 gross for a fortnight, I should be taxed $138 but I'm only taxed $90. Come the end of financial year will I end up with a tax debt, or can I claim all of the kilometres at tax time? Thanks

Hi sheree,

if you have been paid an ASSESSABLE car allowance, then you can (and should) claim the deductions that correlate to the income. your options for this are:
c/km method: claim a reasonable estimated amount of work-related travelling up to 5000km at $0.66/cm

log book method: keep a log book, record everything and keep ALL your receipts. there is plenty of advice (even from the ATO) online, but you MUST comply with ALL the rules, so you have to be very sure you have all the info and documents that the ATO will require. The deduction is potentially very high, so the ATO is very much aware that people will want to have a crack at claiming large amounts without all the documents to support it.

so proceed with caution!!!

or get some advice from someone who knows what they are talking about. You will probably find that the accounting fees will be offset by a larger refund in your return.

regards
brendan

yup

ALL receipts.

if you cannot substantiate ALL the claims then the ATO is able to deny the claim....either the part that you cant find receipts for or the WHOLE claim.

so if you want to claim using the log book method you need to do your homework and keep ALL your receipts.

remember also that you will also be able to claim depreciation and finance costs on your car under the log book method.....or at least you will be able to claim the % of the expenses that are work-related.
regards
Brendan

Just a little extra info here for you Sheree: the ATO has a document called PS LA 2005/7, which sets out the circumstances under which you MIGHT be able to get away with claiming things based on bank statements as evidence (eg if you have lost the receipts)......google the document and enjoy some light reading, hahaha

BUT BE WARNED!!!! the ATO giveth, and the ATO taketh away!!!

this document seems to indicate that you can punch out your bank and credit card statements, rip in with a highlighter and claim everything. Not necessarily so. The BEST document you can have is an ACTUAL LEGIBLE RECEIPT. They might allow some claims for some things based on a bank statement, but take it from me: they dont like it, and you will have your hands full getting the ATO to accept large claims based on bank statements alone if you get an audit!

good luck!!
Brendan

Glenmorangie I find best for reading ATO documents: numbs the pain:)