Draft Legislation on Car Expenses Deductions

Draft legislation has been released to amend the methods for calculating deductions for work-related car expenses. Currently, taxpayers have the option of four methods to access the work-related car expenses deduction. These are the cents per kilometre method, logbook method, 12 per cent of original value method, and one-third of actual expenses incurred method. The proposed amendments will remove the 12 per cent of original value and the one-third of actual expenses methods. While the other two methods will be retained, the cents per kilometre method will be amended by replacing the three current rates based on engine size with a single rate of 66 cents per kilometre for all motor vehicles. The amendments will apply from the 2015-16 income year.

 

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2016-03-22T01:09:52+00:00