Claiming car expenses
From 1 July 2015 car expense deductions for individuals were simplified by reducing the options for claiming these expenses. From this financial year, the only options able to be used are the log book or cents per kilometre methods. The 12% of original value and one third of actual expenses options have now been abolished.
Additionally, the cents per kilometre method has been simplified to use a standard rate of 66 cents per kilometre, rather than a rate based on the engine size of the car.
As a result of this change employers who pay their employees a car allowance need to withhold tax on the amount they pay over 66c per kilometre.
Not sure how this affects you? Your accountant can help you determine how to best calculate your car expenses.
Source: Bentleys www.pwafinancial.com.au
