Claiming Work Related Travel Expenses
In last year’s (2015/16) Federal Budget the Government announced substantial changes to the way you can claim tax deductions for the business use of a motor vehicle. There were four methods for calculating work related expense claims made for the 2014/15 tax year :
- cents per kilometre
- 12 per cent of original value
- one-third of actual expenses
As from the 1st July 2015 motor vehicle expense claims are limited to:
- the 12 per cent of original value of the vehicle method and the one third of actual expenses incurred method will no longer be available (these two methods were used when more than 5,000 km are driven annually for work purposes. Only around 3% of total deductions were claimed using these two methods)
- the three existing rates for claims per kilometre (which were based on engine size) have been replaced with one rate of 66 cents per km. This rate may be updated by the Commissioner of Taxation from time to time but remains the rate for the 2016/17 tax year.
Click HERE to download the full edition of The Business Accelerator Magazine for June 2016
Other articles in this edition:
- 2016 Federal Budget Highlights
- Personal Taxation
- Reductions In Corporate Tax Rate
- Access To Small Business Tax Concessions
- Increasing The Small Business Income Tax Offset (SBITO)
- Superannuation Changes
- Medicare Levy Low Income Thresholds for 2015/16
- Applying GST To Low Value Imported Goods
- Amendments To Division 7A
- Youth Employment Package - Bonuses For Hiring Young People & Interns
- SuperStream Deadline - 30th June
- What Are The Acres Of Diamonds In Your Business?
- Starting A Business - Do The Numbers Stack Up?
IMPORTANT DISCLAIMER:This newsletter is issued as a guide to clients and for their private information. This newsletter does not constitute advice. Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.