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Motor vehicle Travel | Tax Returns

July 24, 2023

Can I Claim Driving to work on my Tax? 

If you need to use your own personal vehicle for work, you may be able to claim the car expenses or km’s as a tax deduction on your e-tax return. While this is an exciting prospect for those who may not be aware of it, it’s quite easy to get confused by the eligibility around whether you can or can’t claim driving to and from work, and it varies from person to person.

Driving to work can be tax deductible

We look at some of the eligibility below: 

You work for one employer and only drive to and from work                    

  sad

Driving to and from work in your vehicle isn’t claimable
You need to drop/collect mail on your way to or from work   sad Although this is a work-related task, as you are already on your way home, you can’t claim the KM’s travelled. 
You carry heavy/bulky tools over 20KG (e.g. a ladder) to work   smiley This is claimable, however, there mustn’t be a safe place to leave the tools at work and it always helps to get a letter from your boss to back up your claim. 
You are a shift worker and have been called into work   sad This is not claimable, this is just like driving to and from work on a regular day
You work at two separate jobs and need to travel from one workplace to the other on the same day   smiley The travel between workplaces is claimable. Make sure you keep a logbook to claim back your KM’s. 
You are an itinerant worker smiley If you travel between home and shifting places of work throughout the day, you may be able to claim a deduction

Note: These are examples, if you are unsure whether you can claim a deduction, ask.

So what other motor vehicle travel can you claim?

  • You can claim travel that you need to do for work in your own car
    e.g.
    Travelling from work to a meeting or conference
    Travelling from work to run errands e.g. banking
    Travelling from work to collect supplies
    Travelling from one workplace to another for the same employer

How do I claim my motor vehicle travel?

There are two ways you can claim the travel you have done in your Motor Vehicle:

  1. The logbook method

  2. The cents per kilometre method

The most important thing to remember when claiming KM’s is to keep a logbook to track the work KM’s traveled. We go into detail about these two methods and what information to record in another blog Claiming Car Expenses.

So, if you need to use your car for work, make sure you claim back the KM’s and/or expenses you have paid out throughout the year. The more you log the more you can claim.

Use the GoTax Deduction Grabber App.  Scan the QR code to take you right to your store.

Gotax Deduction Grabber

Confidently complete your tax return online with GoTax, we will review and check it before we lodge for you!

Quick Tax Return $10, Income Tax Return with the lot $49 and if it’s your first time, you can do it for FREE!

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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.

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