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I get a motor vehicle allowance now, does that mean I can't claim my car costs anymore?

This could be a bit of a complex issue if we consider Fringe Benefits Tax, so for the purpose of the answer we'll ignore it.  So you know, Fringe Benefits Tax is an employer issue that doesn't really concern you.

If you receive a motor vehicle allowance, chances are it's been delivered to you as an allowance or it's been included in your gross wages; and appears on your payment summary as Income.

This means it forms part of your taxable income and you will, accordingly, pay tax on it.

So what to do?

If you're receiving an allowance of this type it generally means you're required to use your car in some capacity in order for you to do your job. 

That means you need to make a claim against the income, otherwise you will pay excess tax on your income.  So you need to keep your log books intact and track all those car expenses to make a claim to offset that income.

And, of course, to do that effectively you need the super dooper,  great, fantastic expense tracking system, oh wait we created that, ...... drum roll..... the GoTax Deduction Grabber.  Scan this QR code and your ready for tax action.

Motor vehicle expenses Gotax

Enjoy the Tax Fun

gotax.com.au

Start your tax return now and finishit before dinner starts.  Gotax, fast, efficient and it won't break your bank.

 

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