Motor Vehicle Deductions 2009

Motor Vehicle - Set Rate per Kilometre

If you use a personal vehicle for work purposes you can make a claim based on a set rate per business kilometre, up to a maximum of 5,000KM. This method is ideal if you only need to claim for minor travel, as you do not need any written evidence or receipts. However you are required to substantiate any claim made with other evidence. (Such as diary evidence of the trips made, and distance travelled.)

The Tax Office rates are as follows:

• 2009 Tax Year: NON-ROTARY (Standard Engine)
• 1,600 cc (1.6 L) or less - 63c per KM
• 1,601 – 2600 cc (1.601 L – 2.6 L) - 74c per KM
• 2,601 cc (2.601 L) and over - 75c per KM

• 2009 Tax Year: ROTARY
• 800cc (0.8 L) or less - 63c per KM
• 801 – 1300 cc (0.801L – 1.3L) - 74c per KM
• 1,301 cc (1.301 L) and over - 75c per KM

Motor Vehicle - Other Methods

You can also make claims based on various other methods such as the Logbook Method, 12% of original value, and 1/3 of actual expenses

Under the 12% Method, you are required to have travelled more than 5,000KM for business use for the year. However written evidence is not required as per the Set Rate Per Kilometre

In the 1/3 of actual expenses method and the Logbook Method - You are required to keep full documentation for all your motor vehicle expenses. This includes Fuel & Oil, Repairs & Maintenance, Insurance, Registration, Lease Payments, Depreciation and Interest Expense. In addition under the 1/3 method you are required to travel more than 5,000KM for work related purposes. Furthermore for the Logbook method a logbook is needed to calculate the percentage of business use travelled during the year.