Car and travel expenses

Car and travel expenses, ATO explains the circumstances when a claim for car or travel expenses may be made by a taxpayer.

Car and travel expenses - Car expenses

If you use your own car in performing your work-related duties (including a car you lease or hire), you may be able to claim a deduction for car expenses.

If the travel was partly private, you can claim only the work-related portion.

This information relates to car expenses only. A car is defined as a motor vehicle (excluding motor cycles and similar vehicles) designed to carry a load less than one tonne and less than nine passengers. Many four-wheel drive vehicles are included in this definition.

For a summary of this content in poster format, see Car expenses (PDF, 548KB). This link will download a file

On this page:

• When you can and can't claim car expenses
• Using someone else's car or other vehicle
• Calculating your deductions
• Owned or leased cars
• Damage to a third-party motor vehicle

When you can and can't claim car expenses

When you can claim

You can claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee – for example, to:

• carry bulky tools or equipment (such as an extension ladder or cello) that your employer requires you to use for work and there is no secure storage available at work
• attend work-related conferences or meetings away from your normal workplace
• deliver items or collect supplies
• travel between two separate places of employment, but not if one of the places is your home (for example, when you have a second job)
• travel from your normal workplace to an alternative workplace (that isn't a regular workplace) and back to your normal workplace or directly home
• travel from your normal workplace or your home to an alternative workplace that is not a regular workplace – for example, a client’s premises
• perform itinerant work.

If you receive an allowance from your employer for car expenses, it is assessable income and the allowance must be included on your tax return. The amount of the allowance is usually shown on your income statement or payment summary.

Using someone else's car or other vehicle

If you use someone else's car or other vehicle (that is not defined as a car) for work purposes, you may be able to claim the direct costs (such as fuel) as a travel expense.

Other vehicles include:

• motorcycles
• vehicles with a carrying capacity of  
  • one tonne or more, such as a ute, truck or panel van
  • nine passengers or more, such as a minivan.

When working out your claim, you need to use the actual costs of your motor vehicle expenses. You need to keep receipts for the actual costs you incur such as fuel and oil. You can use a logbook or diary to separate private use from work-related trips. You can use the myDeductions tool to help keep your records.

Hunter Partners are Accountants, Tax Agents and Financial Planners. We can assist you with all aspect of your accounting, tax and financial planning requirements, call Hunter Partners on (07) 4723-1223.