How to Claim Tax Reduction
If you claim tax reduction for business-related car expenses, the number of kilometres you drive can affect the method you use to claim.
Money Magazine said that those claiming fewer than 5,000km can claim without keeping a record by claiming a set number of cents per business kilometre travelled.
Those claiming more business mileage have three main methods, all of which require some form of record keeping.
The first option is that drivers can choose to log their business travel for no fewer than 12 consecutive weeks to calculate the percentage of a car's total running costs that can be claimed.
Another option is a flat 12% of the purchase price. This can be done only with reasonable proof of the car's use for a minimum of 5,000km business travel per financial year, and is only available for cars worth $59,133 or less.
Finally, a third of your car's actual running costs can be claimed, but this involves more intensive record keeping, requiring details of all associated costs, such as registration, fuel, servicing and insurance.