Car Expenses that are Non Deductible


(last updated 27/03/2014)

For a checklist of allowable car deductions see this post Car Expenses you can Claim


Travel between home and work
You cannot claim a deduction for the cost of normal trips using your car to travel between your home and your workplace. It is a private expense even if you do small tasks on your way to or from work—forexample, picking up the office mail.

You cannot claim a deduction for the cost of home to work travel just because you work shift work, are 'on call' or there is no public transport available.
Motor vehicle provided by your employer or any other person
You cannot claim a deduction for car expenses if your employer or any other person provides a car for you and you do not pay for any of the running costs.

You cannot claim a deduction for any expenses you incur for the direct operation of a car that your employer provides and that you or your relatives use privately at any time, even if the expenses are work related. Such expenses form part of the valuation of the car for fringe benefits tax purposes. However, you may be able to claim expenses such as parking and bridge fees that are linked to the car but are not involved in its direct operation.

If you receive a car allowance from your employer it will need to be shown as assessable income.  See this post for a checklist of eTax Return and Assessable income.

For help with your eTax return see our eTax Return Checklist.

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