If you use your personal motor vehicle for work purposes, you may be able to claim some of the expenses associated with this travel. Please note, this claim category is only available upon consultation with Oncore.
Oncore provides the opportunity for you to salary package your business-related expenses. This is not a direct reimbursement of the expense but an offset against your taxable income resulting in greater take-home pay for you. The expenses that you can claim include your mobile phone, internet connection, software purchases, study, self-education, etc.
These are expenses that relate to your current contract that Oncore is managing.
Relevant Expenses include:
- All associated car running expenditure including lease repayments
- Fuel
- Registration
- Insurance
- Maintenance & Repairs
There are two (2) methods available to you for the purpose of claiming your work-related car expenditure. These methods are available on any car used by you for work purposes which are owned or leased by you. These claim methods are not available for the following kind of vehicles:
- a vehicle with a carrying capacity of one tonne or more, such as a utility truck or panel van (please contact us to see if there is an alternative method)
- a vehicle with a carrying capacity of nine or more passengers
- a motorcycle
The method that best suits you will depend on how you use your car for work purposes. A member of our compliance team will be happy to assist in selecting the best method for you based on your circumstances.
Further guidelines follow for each respective claim method.
Method 1: Cents per km
- A rate of 85 cents per kilometre applies for from 1 July 2023 onwards
- The rate takes into account all car running expenditure such as fuel, registration, and insurance. No other car expense claims are accepted when claiming via this method
- The number of business kilometres claimed for a respective financial year cannot exceed 5,000
- Home to work commuting is not classified as business travel
- No receipts are required by Oncore, however, the ATO may request that you show how you determined the business kilometres claimed. This may include producing diary records of work-related trips.
Method 2: Log Book
- A logbook is required to be maintained for a 12 week period which substantiates a business usage percentage
- This percentage is then applied against the car’s total running expenditure to calculate the claim amount
- Expenses for depreciation or interest on finance are only claimable in situations where the vehicle is purchased outright without the involvement of a novated lease
- Depreciation will be calculated on a monthly basis and applied to your taxable income
- Interest on loans will be required to be substantiated through a formal document such as a bank statement confirming the interest on the loan that is being claimed.
If, after reading this article, you are still unsure what types of expenses you may be able to claim under this category, please either send us an email at supportaus@oncoreservices.com, or phone us on 1300 654 484 and we will strive to answer any of your questions.