We all want to get the most out of tax time. And if you’ve been clocking up the k’s in your car for work, you might be thinking, “Yep, that’s money back in my pocket.” But hang on — before you go claiming every trip you’ve done this year, there’s something you need to ask yourself:
Was that actually a work-related trip, or just part of your normal day?
The line between work and personal use isn’t always clear. And when it comes to the ATO, getting it wrong can cost you. So let’s break it down, simply, clearly, and without any fluff.
Just Because You Used Your Car on a Workday Doesn’t Mean You Can Claim It
Let’s say you drove to work, grabbed a coffee on the way, and then headed home later that afternoon. Seems like a work day, right?
Sure. But the driving? Probably not claimable.
And that’s the part that trips people up.
The ATO sees your regular commute as private, no matter how important the day was. Even if you answered calls on the way in. Even if you grabbed some gear from Bunnings after work.
If your trip starts at home and ends at work, or the other way around, it’s not claimable in most cases. Harsh? Maybe. But that’s the rule.
So, What Does Count as a Work-Related Car Trip?
You can claim car expenses if you use your own vehicle (or one you lease) to do certain things for work. The ATO spells it out pretty clearly:
- Driving between multiple job sites on the same day? That counts.
- Going from your office to meet a client somewhere else? Also counts.
- Picking up equipment, supplies, or tools after you’ve started work? Yep, claimable.
Here’s one that surprises people: if you have to carry bulky gear for work and there’s no secure storage at your workplace, you might be able to claim the trip between home and work. But that only applies in specific cases.
If you’re just ducking into the office and your only “tool” is your phone, forget it — not deductible.
Two Ways to Claim, but Only One Might Work for You
There are two options to claim your car expenses if you’re eligible. And no, you can’t just pick whichever gives you the bigger refund; you have to follow the rules.
1. Cents per kilometre method
This one’s pretty straightforward. You get 85 cents for every work-related kilometre you travel, up to 5,000 km per year. You don’t need receipts for fuel or servicing, but you do need a reasonable estimate of the distance you travelled and what it was for.
2. Logbook method
A bit more effort, but if you use your car a lot for work, it could be worth it. You keep a logbook for 12 weeks, write down every trip, and track how much of your driving is work-related. Then you claim that percentage of all your car expenses — fuel, servicing, rego, insurance, the lot.
It only works if you keep proper records. No guesstimates. No shortcuts.
Real-Life Example: What’s Claimable and What’s Not?
Let’s say you’re a tradie. You drive from home to your first job site — that’s private. Then you go to a second site across town — that’s work-related. Later, you stop to grab some materials before heading to your next job — still claimable. Then you go home — that part’s private again.
Same car, same day, but only some of those trips count.
Or maybe you work in sales. You drive from the office to a client meeting and then to another meeting after that. That’s deductible. But the drive from home to the office in the morning? Not deductible.
What Happens If You Get It Wrong?
Let’s not sugar-coat it. If your claim doesn’t add up, the ATO might come knocking. And when they do, they’ll want to see your records. If you don’t have them, or you’ve claimed trips you weren’t meant to, you might have to repay the refund. Sometimes with interest. Sometimes with penalties.
Even if it was an honest mistake, you’ll still feel the sting.
And the worst part? It’s avoidable. With just a little bit of effort, you can stay on the safe side.
How to Keep It Clean (and Still Get What You’re Owed)
Want to claim without stress? Here’s what you need to do:
- Only claim eligible trips. Check the rules — not what your mate at work says.
- Record your travel. Whether you use an app or a paper logbook, it’s got to be clear and honest.
- Choose the method that fits. If your work trips are occasional, the cents per kilometre method is probably enough. If they’re regular, look into the logbook method.
- Keep your receipts, especially if you’re using the logbook method. Every dollar needs a paper trail.
Remember, the ATO isn’t out to get you. They just want to see that your claim makes sense.
Final Thought: Be Smart, Not Sorry
It’s easy to get carried away at tax time. Everyone wants a bigger refund. But claiming car expenses you’re not entitled to can land you in hot water.
So before you scroll through your calendar or start punching numbers into your tax software, take a second. Ask yourself: “Was this really a work trip? Would I feel confident explaining it to the ATO?”
If the answer’s no, leave it off.
If the answer’s yes, make sure you’ve got the records to back it up.
You work hard. And if you’ve been using your car for work, you should absolutely claim what you’re owed. Just make sure you’re doing it the right way.
Because nothing ruins a tax refund faster than having to give it all back.
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