{"id":16315,"date":"2024-07-31T19:39:06","date_gmt":"2024-07-31T08:09:06","guid":{"rendered":"http:\/\/quantiphy.com.au\/oldbackup\/?p=16315"},"modified":"2024-07-31T19:46:39","modified_gmt":"2024-07-31T08:16:39","slug":"motor-vehicle-expenses-which-method-should-my-business-use","status":"publish","type":"post","link":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/","title":{"rendered":"Motor vehicle expenses: which method should my business use?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">If your business owns or leases a vehicle that\u2019s used for business purposes, it\u2019s essential to keep proper records to ensure you\u2019re entitled to the maximum deduction for your vehicle expenses. Running costs like fuel and oil, repairs, servicing, insurance premiums and registration are all potentially claimable, as well as interest payments on a loan to purchase the vehicle, lease payments, and depreciation. However, the method used to calculate your claim depends on your business structure and the type of vehicles you\u2019re claiming for.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your business operates in a trust or corporate structure, you must use the \u201cactual costs\u201d method for all types of vehicles used in your business. This means you can claim the expenses actually incurred, which requires you to keep receipts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can only claim for business-related use, so if you use the vehicle for any private purposes you must identify the percentage that relates to business use. Keeping a diary that records your business and private use will allow you to justify your claim. Travel between your home and your business is treated as \u201cprivate\u201d use, unless you operate your business from home and need to travel away from home for business purposes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re a sole trader (or operating in a partnership that includes at least one individual), the method to use depends on whether the vehicle you\u2019re claiming for is a \u201ccar\u201d (a vehicle designed to carry fewer than nine passengers and a load less than one tonne). For non-cars, you must use the \u201cactual costs\u201d method. But for car expenses, you have a choice of which method to use: either the \u201ccents-per-kilometre\u201d method or the \u201clogbook\u201d method.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cents-per-kilometre method allows you to claim a set rate per kilometre travelled for business use, up to a maximum 5,000 km per year. The current rate for 2024\u20132025 is 88 cents per business kilometre. The law requires you to make a \u201creasonable estimate\u201d of your business kilometres, which means you need to be able to show the ATO how you derived your total number of hours.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The logbook method isn\u2019t limited to 5,000 km, but you\u2019ll need to keep more detailed records. A logbook of your business kilometres travelled is required in order to calculate the percentage of total kilometres travelled for business during the year. This is then multiplied by your car expenses. In the first logbook year, you\u2019ll need to record detailed odometer readings for each trip in a 12-week continuous period. This representative period can then be used as the basis for calculating your claim for the year, and for the next four years.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your business owns or leases a vehicle that\u2019s used for business purposes, it\u2019s essential to keep proper records to ensure you\u2019re entitled to the maximum deduction for your vehicle expenses. Running costs like fuel and oil, repairs, servicing, insurance premiums and registration are all potentially claimable, as well as interest payments on a loan&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16316,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41,6,43],"tags":[],"class_list":["post-16315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-news","category-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Motor vehicle expenses: which method should my business use? - Quantiphy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Motor vehicle expenses: which method should my business use? - Quantiphy\" \/>\n<meta property=\"og:description\" content=\"If your business owns or leases a vehicle that\u2019s used for business purposes, it\u2019s essential to keep proper records to ensure you\u2019re entitled to the maximum deduction for your vehicle expenses. Running costs like fuel and oil, repairs, servicing, insurance premiums and registration are all potentially claimable, as well as interest payments on a loan...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/\" \/>\n<meta property=\"og:site_name\" content=\"Quantiphy\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-31T08:09:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-31T08:16:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2024\/07\/Quantiphy-car.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#\\\/schema\\\/person\\\/1229e0370958728f31fa8f8604b0dfc2\"},\"headline\":\"Motor vehicle expenses: which method should my business use?\",\"datePublished\":\"2024-07-31T08:09:06+00:00\",\"dateModified\":\"2024-07-31T08:16:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/\"},\"wordCount\":447,\"publisher\":{\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/wp-content\\\/uploads\\\/2024\\\/07\\\/Quantiphy-car.jpg\",\"articleSection\":[\"Accounting\",\"News\",\"Tax\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/\",\"url\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/\",\"name\":\"Motor vehicle expenses: which method should my business use? - Quantiphy\",\"isPartOf\":{\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/wp-content\\\/uploads\\\/2024\\\/07\\\/Quantiphy-car.jpg\",\"datePublished\":\"2024-07-31T08:09:06+00:00\",\"dateModified\":\"2024-07-31T08:16:39+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#primaryimage\",\"url\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/wp-content\\\/uploads\\\/2024\\\/07\\\/Quantiphy-car.jpg\",\"contentUrl\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/wp-content\\\/uploads\\\/2024\\\/07\\\/Quantiphy-car.jpg\",\"width\":1280,\"height\":640,\"caption\":\"Business man leaning up against a car\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/motor-vehicle-expenses-which-method-should-my-business-use\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Motor vehicle expenses: which method should my business use?\"}]},{\"@type\":\"WebSite\",\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#website\",\"url\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/\",\"name\":\"Quantiphy\",\"description\":\"Accounting, Taxation, Wealth &amp; Finance in one\",\"publisher\":{\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#organization\",\"name\":\"Quantiphy\",\"url\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/Screen-Shot-2020-10-15-at-11.04.47-am.png\",\"contentUrl\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/wp-content\\\/uploads\\\/2020\\\/10\\\/Screen-Shot-2020-10-15-at-11.04.47-am.png\",\"width\":884,\"height\":260,\"caption\":\"Quantiphy\"},\"image\":{\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/#\\\/schema\\\/person\\\/1229e0370958728f31fa8f8604b0dfc2\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/10051da91b5ec8396300b2bb336697b7898938c99d91a95f5105956221760164?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/10051da91b5ec8396300b2bb336697b7898938c99d91a95f5105956221760164?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/10051da91b5ec8396300b2bb336697b7898938c99d91a95f5105956221760164?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/quantiphy.com.au\\\/oldbackup\"],\"url\":\"https:\\\/\\\/quantiphy.com.au\\\/oldbackup\\\/author\\\/admin\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Motor vehicle expenses: which method should my business use? - Quantiphy","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/","og_locale":"en_US","og_type":"article","og_title":"Motor vehicle expenses: which method should my business use? - Quantiphy","og_description":"If your business owns or leases a vehicle that\u2019s used for business purposes, it\u2019s essential to keep proper records to ensure you\u2019re entitled to the maximum deduction for your vehicle expenses. Running costs like fuel and oil, repairs, servicing, insurance premiums and registration are all potentially claimable, as well as interest payments on a loan...","og_url":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/","og_site_name":"Quantiphy","article_published_time":"2024-07-31T08:09:06+00:00","article_modified_time":"2024-07-31T08:16:39+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2024\/07\/Quantiphy-car.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#article","isPartOf":{"@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/"},"author":{"name":"admin","@id":"http:\/\/quantiphy.com.au\/oldbackup\/#\/schema\/person\/1229e0370958728f31fa8f8604b0dfc2"},"headline":"Motor vehicle expenses: which method should my business use?","datePublished":"2024-07-31T08:09:06+00:00","dateModified":"2024-07-31T08:16:39+00:00","mainEntityOfPage":{"@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/"},"wordCount":447,"publisher":{"@id":"http:\/\/quantiphy.com.au\/oldbackup\/#organization"},"image":{"@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#primaryimage"},"thumbnailUrl":"https:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2024\/07\/Quantiphy-car.jpg","articleSection":["Accounting","News","Tax"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/","url":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/","name":"Motor vehicle expenses: which method should my business use? - Quantiphy","isPartOf":{"@id":"http:\/\/quantiphy.com.au\/oldbackup\/#website"},"primaryImageOfPage":{"@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#primaryimage"},"image":{"@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#primaryimage"},"thumbnailUrl":"https:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2024\/07\/Quantiphy-car.jpg","datePublished":"2024-07-31T08:09:06+00:00","dateModified":"2024-07-31T08:16:39+00:00","breadcrumb":{"@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#primaryimage","url":"https:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2024\/07\/Quantiphy-car.jpg","contentUrl":"https:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2024\/07\/Quantiphy-car.jpg","width":1280,"height":640,"caption":"Business man leaning up against a car"},{"@type":"BreadcrumbList","@id":"https:\/\/quantiphy.com.au\/oldbackup\/motor-vehicle-expenses-which-method-should-my-business-use\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"http:\/\/quantiphy.com.au\/oldbackup\/"},{"@type":"ListItem","position":2,"name":"Motor vehicle expenses: which method should my business use?"}]},{"@type":"WebSite","@id":"http:\/\/quantiphy.com.au\/oldbackup\/#website","url":"http:\/\/quantiphy.com.au\/oldbackup\/","name":"Quantiphy","description":"Accounting, Taxation, Wealth &amp; Finance in one","publisher":{"@id":"http:\/\/quantiphy.com.au\/oldbackup\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"http:\/\/quantiphy.com.au\/oldbackup\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"http:\/\/quantiphy.com.au\/oldbackup\/#organization","name":"Quantiphy","url":"http:\/\/quantiphy.com.au\/oldbackup\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"http:\/\/quantiphy.com.au\/oldbackup\/#\/schema\/logo\/image\/","url":"http:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-15-at-11.04.47-am.png","contentUrl":"http:\/\/quantiphy.com.au\/oldbackup\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-15-at-11.04.47-am.png","width":884,"height":260,"caption":"Quantiphy"},"image":{"@id":"http:\/\/quantiphy.com.au\/oldbackup\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"http:\/\/quantiphy.com.au\/oldbackup\/#\/schema\/person\/1229e0370958728f31fa8f8604b0dfc2","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/10051da91b5ec8396300b2bb336697b7898938c99d91a95f5105956221760164?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/10051da91b5ec8396300b2bb336697b7898938c99d91a95f5105956221760164?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/10051da91b5ec8396300b2bb336697b7898938c99d91a95f5105956221760164?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/quantiphy.com.au\/oldbackup"],"url":"https:\/\/quantiphy.com.au\/oldbackup\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/posts\/16315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/comments?post=16315"}],"version-history":[{"count":2,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/posts\/16315\/revisions"}],"predecessor-version":[{"id":16319,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/posts\/16315\/revisions\/16319"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/media\/16316"}],"wp:attachment":[{"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/media?parent=16315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/categories?post=16315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quantiphy.com.au\/oldbackup\/wp-json\/wp\/v2\/tags?post=16315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}