Newspaper article The Observer (Gladstone, Australia)

Tax Office Moves to Decrease Vehicle Claims

Newspaper article The Observer (Gladstone, Australia)

Tax Office Moves to Decrease Vehicle Claims

Article excerpt

Byline: Steve Marsten

Tina and I delivered our annual tax and property update seminar recently, pointing out the various risk areas tax payers face in the coming 12 months with deductions and claims.

One point that many people weren't necessarily aware of is the changes to the vehicle claims.

In recent years there has been a surge in motor vehicle expenditure claims as deductions against wages income and small business revenues.

Now in some cases the ATO seems to think there is something sinister behind this increase, however I suggest that if they investigate a little further they will find the rise in deductions is a reflection of the changing work patterns and the fact many small business owners are simply a lot more mobile.

So previously taxpayers had the option of claiming under four different methods.

The log book method;

One third of costs method;

12% of the car value method; or

The statutory (cents/km) method up to 5000 kilometres

From the 1st July, 2015 the ATO is scrapping the one third of cost and the 12% of value methods. …

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