Reform of car expense deductions
Do you deduct work-related car expenses? If so, the way you calculate your deductions is about to change.
On 16 July 2015, Treasury released Exposure Draft legislation dealing with the Budget announcements regarding the simplification of the methods used for calculating work related car expense deductions.
The Australian Treasury has released Exposure Draft legislation regarding the simplification of the methods used for calculating work-related car expense deductions. The measures were announced as part of the May budget.
The amendments will remove two methods that are used by less than 2% of taxpayers: the 12% of original value and one third of actual expenses methods. The log-book method will be retained as it currently is and the cents per kilometer method will be updated by replacing the three different rates based on engine size with one set rate of 66 cents per kilometer.
These amendments are proposed to apply from 1 July 2015 and submissions can be made up to 5 August 2015.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.