How Many KMs Can I Claim Without a Log

How Many KMs Can I Claim Without a Logbook?

Navigating the rules around claiming work-related car expenses can be confusing, especially when it comes to understanding how many kilometres (KMs) you can claim without a logbook. Here’s a simple, instructional guide to help you understand the process, complete with examples and traps to avoid.

Cents Per Kilometre Method

The Australian Taxation Office (ATO) allows you to claim work-related car expenses using the cents per kilometre method without needing a logbook. Here’s how it works:

1. Maximum Distance: You can claim up to a maximum of 5,000 work-related kilometres per car, per financial year, without a logbook.

2. Rate Per Kilometre: For the 2024-25 financial year, the rate is 88 cents per kilometre. This rate covers all car expenses, including fuel, maintenance, and depreciation.

3. Record Keeping: While you don't need a logbook, you must keep a record of how you calculated your work-related kilometres. This can be done using a diary, calendar, or the myDeductions tool in the ATO app.

Example

Let's say you're a sales representative who drives to meet clients. If you drive 4,500 kilometres for work purposes in a year, you can claim this distance using the cents per kilometre method. At 88 cents per kilometre, your claim would be:

4,500 KMs x $0.88 = $3,960

Traps to Avoid

While the cents per kilometre method is straightforward, there are common traps to avoid:

1. Exceeding the Limit: You can only claim up to 5,000 work-related kilometres per car, per financial year. If you exceed this limit, you must use the logbook method for the entire claim.

2. Insufficient Records: Even without a logbook, you must still keep records to substantiate your claim. Without proper documentation, your claim could be denied.

3. Personal Use: Only work-related kilometres are deductible. Personal use, such as commuting from home to work, is not eligible for a tax deduction.

Examples of Non-Deductible Kilometres

1. Daily Commute: Driving from your home to your regular place of work is considered private travel and is not tax deductible.

2. Personal Errands: Kilometres driven for personal errands, even if they occur during the workday, are not tax deductible.

Gotax Advice

To maximise your tax deductions, always keep thorough records of your expenses. Use the Gotax Deduction Grabber App, which includes all the logbooks and tax expense recording systems you need. Scan the QR code to download and make tax time a breeze.

Gotax Tax Advice: Consider using the Gotax app to track your work-related kilometres throughout the year. This will ensure you have accurate records and can easily substantiate your claims, making the tax filing process smoother and more efficient.

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