Do you use a motor vehicle for business purposes?

Here’s a quick overview for motor vehicle deductions…

 

Based on business structure

For sole traders and partnerships where at least one partner is an individual, different types of vehicles have different ways of calculating their deductions. Cars must use the cents per kilometer or logbook method, whereas other vehicles must use the actual costs method.

Companies or trusts on the other hand, must use the actual costs method for any vehicle type.

 

Using the logbook or actual costs methods would mean you can only claim expenses or depreciation/decline in value for the business-use portion of the vehicle.

 

Have any questions? Don’t worry, further information can be found at ato.gov.au, the source of our information.