Tax & Mileage

Kiwitrains

Active Member
Just a query sometime before I fill my tax form in, am I right in thinking that instead of keeping a log book you can claim the Milage/km given by the ATO as long as you take it from the app and that includes dead miles as long as the app was on and you were taking pings. If this is a fact does the figure given 0.66c/km include all maintainance,fuel etc.
 

UberDriverAU

Well-Known Member
Just a query sometime before I fill my tax form in, am I right in thinking that instead of keeping a log book you can claim the Milage/km given by the ATO as long as you take it from the app and that includes dead miles as long as the app was on and you were taking pings. If this is a fact does the figure given 0.66c/km include all maintainance,fuel etc.
You can claim a maximum of 5,000 business kms using the "cents per km" method. The $0.66/km rate is all inclusive (ie. insurance, rego, maintenance, fuel, etc), you can't then claim deductions for such car expenses separately.
 

lui6155

Well-Known Member
You can claim a maximum of 5,000 business kms using the "cents per km" method. The $0.66/km rate is all inclusive (ie. insurance, rego, maintenance, fuel, etc), you can't then claim deductions for such car expenses separately.
UberDriverAU happy to defer to u on this stuff but my understanding (limited as it may be) is that car expenses are defined as "any outgoings to do with a car or operating a car (eg fuel, oil servicing and interest ) to quote the master tax guide. So not absolutely clear that car expenses include:
1) insurance and rego
2) costs incurred to get on to the uber platform eg f license, cv check, medical chk and that shite.
Would be pleased if u can clarify, we'll all owe u a thks.
 

UberDriverAU

Well-Known Member
UberDriverAU happy to defer to u on this stuff but my understanding (limited as it may be) is that car expenses are defined as "any outgoings to do with a car or operating a car (eg fuel, oil servicing and interest ) to quote the master tax guide. So not absolutely clear that car expenses include:
1) insurance and rego
Insurance and rego are outgoings to do with a specific car.
2) costs incurred to get on to the uber platform eg f license, cv check, medical chk and that shite.
These ones aren't to do with your car, but are business expenses. Your F extension allows you to drive for reward (not a specific car to be used for reward), the criminal history and medical checks are just part of the F extension process, and again aren't tied to a specific car in the way that car insurance and rego are.
 

UberDriverAU

Well-Known Member
UberDriverAU happy to defer to u on this stuff but my understanding (limited as it may be) is that car expenses are defined as "any outgoings to do with a car or operating a car (eg fuel, oil servicing and interest ) to quote the master tax guide. So not absolutely clear that car expenses include:
1) insurance and rego
2) costs incurred to get on to the uber platform eg f license, cv check, medical chk and that shite.
Would be pleased if u can clarify, we'll all owe u a thks.
What may not be obvious is that if you use the c/km method, you also can't claim depreciation separately:
https://www.ato.gov.au/Business/Income-and-deductions-for-business/Business-travel-expenses/Motor-vehicle-expenses/Calculating-your-deduction/Cents-per-kilometre/ said:
If you use the 'cents per kilometre' method:
  • your claim is based on a set rate for each business kilometre travelled
  • you can claim a maximum of 5,000 business kilometres per vehicle
  • you do not need written evidence to show how many kilometres you have travelled, but we may ask you to show how you worked out your business kilometres
  • you cannot make a separate claim for depreciation of the car’s value.
 

lui6155

Well-Known Member
Cheers UberDiverAU and as suspected...will need to do the comparison of the two methods as the 66c method may not be so beneficial once deprec is included.
On the latter point I have previously discussed with the ATO the small business simplified deprec rules and from memory allow a 15% deduction in the 1st year you apply them and a 30% deduction each year after the first year.
In my case I bought a car 2/15 and used for uber 4/16 and my discussions with the ato concluded that:
1) deduct 15% for fy2016 of the wdv of the car at 4/16
2) deduct 30% thereafter
I intend to recheck and get tax advice but my experience with HR Block etc is that they are unclear in this space...any thoughts from the wise.
 
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