Heretic
25-04-2005, 06:50 PM
On Mon, 21 Mar 2005 10:26:04 +1100, Bob Saccamano wrote:
> The company I work for does not provide a vehicle for work use. Instead,
> I am expected to use my own car and receive a nominal sum (something
> like 34c) per kilometer travelled.
>
> In the past, I have told my accountant that I use the car for work and
> probably clock up about 5000kms a year. I have not claimed the 34c/km
> thinking that ATO would view this as double dipping.
>
> Can I claim the 34c/km AND the km's travelled on the tax return?
It has always been that any allowance you receive from your employer must
be included as part of your total income. There is nothing unusual about
that.
The next step is working out what you can claim by way of work expenses as
a deduction against your total income. Strictly, there is no necessary
connection between the amount of the vehicle allowance you receive and
your vehicle expenses. One common practice is to claim the amount of the
allowance, but you can claim more or less, depending on your own
circumstances. There are several ways to work out your vehicle expenses
that are acceptable to the ATO, and your accountant will be able to tell
you about them. Ultimately, however, you bear the burden of demonstrating
what you claim as a deduction, as your accountant can explain.
The answer to your question is that your question is based on a set of
assumptions that are probably incomplete.
> The company I work for does not provide a vehicle for work use. Instead,
> I am expected to use my own car and receive a nominal sum (something
> like 34c) per kilometer travelled.
>
> In the past, I have told my accountant that I use the car for work and
> probably clock up about 5000kms a year. I have not claimed the 34c/km
> thinking that ATO would view this as double dipping.
>
> Can I claim the 34c/km AND the km's travelled on the tax return?
It has always been that any allowance you receive from your employer must
be included as part of your total income. There is nothing unusual about
that.
The next step is working out what you can claim by way of work expenses as
a deduction against your total income. Strictly, there is no necessary
connection between the amount of the vehicle allowance you receive and
your vehicle expenses. One common practice is to claim the amount of the
allowance, but you can claim more or less, depending on your own
circumstances. There are several ways to work out your vehicle expenses
that are acceptable to the ATO, and your accountant will be able to tell
you about them. Ultimately, however, you bear the burden of demonstrating
what you claim as a deduction, as your accountant can explain.
The answer to your question is that your question is based on a set of
assumptions that are probably incomplete.