Hello, I use my car for work as a business development manager in the finance industry. Are there any grounds for my employer to limit the expenses I can claim each month. I own my car and only claim petrol and tolls but it is a struggle getting paid each month?

Hi Bianca,

From how I understand, when it comes to limiting the expense claim -- it depends on the agreement between employer and the employee. Note that claims being made need to be legitimate and work related only (unless agreed otherwise, which might raise other related issues for the employer).

If you are submitting a report which clearly states how you have worked out eligibility of your work claims, I don't see any issue for the employer to reimburse the same. But in case expense claims are not worked out properly it could be an issue for the employer as he/she would not want to get into FBT area.

Only suggestion that I can give you is to work out a new salary package which provides you motor vehicle allowance (only if getting reimbursed is a problem) which will add to your Income and in order to claim expenses against Motor Vehicle Allowance, you will be required to keep a log book for the Car that you use for work and claim them in your personal tax return.

NOTE: Getting reimbursed for expenses are always preferable according to me.

Hope it helps.

Agree with Anuraag 100%!! Getting reimbursed by your employer is ALWAYS better than having to claim the expense in your tax return!!!

eg: if you incur $10,000 of car expenses and get reimbursed $10,000 you are sweet!!

BUT if you spend $10,000 in car expenses and claim this in your tax, the absolute best result for you is a refund of $4650. You are still over $5k in the hole!!!

I would have a chat with your payroll people and employer/manager to make sure that everyone is on the same page re reimbursements......mush better to discuss the issue and know exactly what is going on I would say.

Good luck

BC