Business Structure
Sole trader
You can only claim motor vehicle expenses that are part of the everyday running of your business. If the vehicle is used for both private and business purposes, you must exclude any private use.
- Cents per km method
- logbook method
For all other vehicles, you can’t use the cents per kilometre or logbook method. Your claims must be for actual costs for expenses, based on receipts. You can use a diary or journal to separate private use from business use.
Company/trust
If you operate your business as a company or trust, you can only claim the actual costs for motor vehicle expenses that are part of the everyday running of your business (such as travelling to and from different business premises, visiting clients or picking up goods for sale). Actual costs are based on receipts for expenses incurred.
Motor Vehicle Ownership
Vehicle owned or leased by your business: Your business can claim a deduction for the running expenses of a vehicle that is owned or leased by your business.
Vehicle owned by your employee: If your employee uses their own vehicle for business-related purposes and you pay them a motor vehicle allowance or reimburse them their costs, your business can claim a deduction for the allowance or expenses reimbursed, such as the cost of fuel.
Reference: Tax & Super Newsroom. Guide to making motor vehicle expense claims.
