EN
If the use of your vehicle is related to your work activity, the expenses incurred can be deducted in your annual tax return. There are two methods for calculating the deduction of these expenses. The only restriction in choosing the method for calculating the deduction is the limitation of 5000 km per year per vehicle (see below for a more detailed explanation). The methods are as follows:
The deduction applicable with this method is as follows:
With an annual limit of 5,000 km per vehicle. In other words, the maximum deduction that can be obtained through this method is $4,250 for the 2024 Fiscal Year (5000 kilometers x 85 cents). To justify this deduction, a diary must be maintained, including the date, purpose of the trip, and kilometers traveled for work purposes.
Example:
Maria Perez works in a medical laboratory with the central office in Brisbane and the production plant in Logan. Once a month, Maria has to travel from the central office to the laboratory, covering a total distance of 50 kilometers. In this case, the deduction would be $510 (50 kilometers x 12 months x 85 cents).
The procedure for calculating the deduction for vehicle use for work through this method is as follows:
With the collected information, the deduction can be calculated as follows:
Example:
Maria Perez correctly maintained her logbook during the quarter from February to April. The total kilometers traveled during this quarter were 8,500 kilometers. The total kilometers for work were 3,500 kilometers. Therefore, the percentage of vehicle use for work is 41% (3,500 kilometers / 8,500 kilometers * 100).
At the same time, Maria incurred the following expenses and kept invoices for them:
In this case, the total value that Maria can deduct is $3,362 (8,200 * 41%).