The cents per km method of claiming motor vehicle expenses can be a lucrative claim, but you can only claim up to 5,000kms. No substantiation is needed, just a reasonable basis for the claim – e.g. 3 times a week from Mitchell to Woden for business meetings.

Interestingly, the 5,000kms is not claimable per person, but rather per car. So if you have 2 vehicles that you use for work, then you could claim 10,000 kms – this would amount to a massive tax deduction of up to $6,600. If you change cars during the year, you can also claim 5,000kms for each car.

If the one car is used by two family members for separate work purposes, then each person can claim expenses using the cents per km method up to 5,000kms. If there are 2 family cars, one family member could use Car 1 for 6 months and clock up 5,000kms, then swap and use Car 2 for 6 months to clock up another 5,000kms. The other family member could do the same with the cars reversed. As a result, they would both be entitled to claim 10,000kms.


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