I frequently have clients who are entitled to claim legitimately up to 5,000 kms of work related travel say “Yeah, I did at least 5,000kms this year, so just claim that”.
The issue here is that the ATO can request taxpayers to provide written evidence to show how they worked out their business kilometres (for example, by producing diary records of work-related trips). So failure to have such evidence can mean any claim is then rejected.
So if you do irregular trips or varying trips on a day to day basis, it is important to keep a record either in diary, notebook or a logbook. As to what trips are deductible:
You cannot claim private travel such as:
- Minor tasks – for example, picking up the mail on the way to work or home
- You have to travel between home and work more than once a day
- You are ‘on call’ – for example, you are on standby duty and your employer contacts you at home to come into work
- There is no public transport near where you work
- You work outside normal business hours – for example, shift work or overtime
- Your home is a place of business and you travel directly to a place of employment.
You can claim the cost of trips between home and work where:
- You use your car because you have to carry bulky tools or equipment that you use for work – for example, an extension ladder or cello and there is no secure place for you to leave them at work
- Your home is a base of employment – you start your work at home and travel to a workplace to continue the work, or
- You have shifting places of employment – you regularly work at more than one site each day before returning home.
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