The Car tax rate for 22/23 in ONLY 78 cents - pretty sure that's on the light side!!
The cost of petrol is through the roof lately, so if you use your car a lot for work it may pay you to use the FULL log book method to claim your car expenses. The 78 cents per kilometer seems a bit lean when fuel prices are running at $1.40 a litre.
The ATO rate per kilometre is now 78 cents for 2022/23 and starts from 1 July 2022.
Using this set rate per kilometre method you can claim up to 5000km per year, It's a nice, easy simple method of claiming your car expenses and requires limited diary entries to be valid. Remember that home to work travel doesn't count and for more involved details of what does count see our previous blogs or use the GoTax software - it'll work it out for you.
Note that it is implied in the 78 cents rate that all costs associated with your car are included in that rate.
Some team of Tax Einsteins' probably sat down in the tax office for a few months to come up with this all inclusive number. It is merely designed to make it easy for you to comply with your year end income tax obligations. Now remember that the government is not overly generous with giving out money so it's a fair bet that the 78 cents rate errs on the conservative side.
If you can get in the habit of recording all things associated with your car then you may find greater tax deductions and hence tax savings, by just putting in a little bit more effort.
And what's the best way to get into that record keeping habit? ...
Yep, you guessed correctly, our clients are so smart.. scan the QR code and get the fantastic, unbelievable, unreal, incredible GoTax Deduction Grabber App. The log book is all there for you and you can also record all those fuel and other car costs; so you're all prepared next year to kick some ATO butt and get a decent tax deduction.
Keep smiling at Gotax.
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