Motor Vehicle Travel Deductions
Following on from last week’s work related deduction tip, the ATO has just announced that they are closely examining deductions for motor vehicle travel.
The ATO is concerned that taxpayers are claiming these deductions when they have not made the actual trips, or when the trips are not for work related purposes and that reimbursements from employers are not being included as income.
Approximately 3.75 million claims are made each year and out of that, 875,000 claim the maximum 5,000 kms.
You are able to claim travel providing you that you have actually made the trips, they are for deductible purposes and if you have sufficient evidence to support your claim. We do not recommend making any claims unless you have the necessary evidence.