Hey there, tax-savvy speedsters! Buckle up for a turbocharged guide on claiming those Motor Vehicle Expenses on your Income Tax Return. We've got not one, but two entertaining ways to get you on the road to tax savings.

Option 1: "Kilometers, Cents, and Adventure!"

Keep a diary of all the exhilarating kilometers you've conquered for work and claim using cents per kilometer method. The maximum claim? A thrilling 5000km! So grab your GPS, start tracking those k's, and let the taxman know just how much rubber you've burned.

Option 2: "Log Books and Vroom Vroom!"

Ready to take your tax deductions to the next gear? Keep a Log Book and gather all your fuel receipts, insurance, green slip, repair invoices, and rego documents. Show the tax authorities that your vehicle is more than just a ride—it's your trusty steed for work! But remember, you'll need the evidence to prove it, so hold on tight to those receipts!

Which method of deduction you choose will depend on how much info you want to keep in terms of log books and receipts, and also how much travel you do for work vs personal.

Now, let's cruise through a couple of exciting examples to rev up your understanding:

Example 1: "Sales Superstar Extraordinaire!"

Picture this: You're the undisputed champion of sales in your team. Every day, you strut into the office, unleash your awesomeness, and then hit the road to charm your customers far and wide. Since you're the road warrior responsible for your vehicle expenses, it's time to buckle up with a Log Book and gather all those thrilling receipts as you are likely doing a bucket load of km's for work which would warrant the extra paperwork and therefore tax claim.

Example 2: "Tool-Toting Adventurer!"

Imagine you work in a place that's a galaxy away from your humble abode. Your employer graciously offers a secure spot for your tools, but you prefer the thrill of bringing them home each day. Unfortunately this commute, aka the travel from home to work isn't deductible (bummer, we know)

If your occupation demands you to transport bulky tools to job sites daily from your depot though, get ready to claim those trips! Just remember, keep records of your work-related travels, or you'll be stuck in the slow lane of non-deductibility.

So what type of trips are deductible?

So, which trips qualify for the tax deduction pit stop? Check out this entertaining checklist:

1. Embarking on epic tool-carrying missions for your trade (landscapers, we're looking at you!)
2. Zooming to a conference like a speed demon
3. Racing to meetings with the precision of an F1 driver
4. Cruising between two workplaces like a pro
5. Delivering items with the efficiency of a courier service
6. Speeding off to pick up essential supplies
7. Whizzing to the bank or post office for work-related matters

But remember, fellow roadsters, keeping records of your work-related travels is crucial. Trusty diary entries noting your trip's kilometers will be your turbocharged ticket to claimability!

And remember you can't claim your normal trip between home and work.

I drive A LOT for work. Should I use the Log Book method?

Now, you might be wondering, "I'm a road warrior. Should I opt for the Log Book method?"

Oh, absolutely! If you find yourself gallivanting for work-related purposes and clocking over 5000km in a year, the Log Book method will be your ultimate road companion. Buckle up for a 12-week consecutive period of meticulous recording—every trip, from the mundane to the magnificent—both private and work-related. This logbook extravaganza gives you the coveted work-related percentage. And guess what? You only need to embark on this logbook quest once every five years. Vroom vroom

Once you have this work-related percentage we can then claim that percentage of all these costs :

• Registration: Your vehicle's license to thrill!
• Insurance: Protecting your wheels from unexpected hazards!
• Fuel: Powering your adventures and tax deductions!
• Car Wash: Because clean vehicles are cooler (and claimable)!
• Repairs/Services/Maintenance: Keeping your ride in top-notch shape!
• Tyres: The road huggers that keep you rolling!
• Roadside Assistance: Saving the day when your vehicle throws a tantrum!
• Lease costs (if applicable): When leasing becomes your tax-friendly driving option!
• Interest (if you have a car loan): Cruising on a loan? The taxman wants to know!
• Depreciation on the car: Note down the cost and purchase date of your four-wheeled companion, because depreciation is a wild ride!

Remember, fuel up on receipts for all these Motor Vehicle Costs. But if keeping track seems as daunting as dodging traffic, fear not! Check out our magical personal wealth portal, where you can effortlessly track and tame all your expenses. It's like having your very own GPS for tax savings!

Where do I get a Log Book from?

And lastly, if you're wondering where to snag a Log Book for your tax adventures, we've got some fun suggestions for you. Say goodbye to paper and embrace the digital era with these groovy apps:

1. Wealth Portal: A sleek and shiny road companion!
2. Drivers Note: The turbocharged app for logging your tax expeditions!
3. Excel/Google Sheets (for the spreadsheet aficionados, here is one we prepared earlier): Unleash your creativity and design your own. Just make sure it has all the essential columns:
   • Odometer at the start of the trip
   • Odometer at the end of the trip
   • Kilometers traveled (because the taxman loves specifics!)
   • Destination (where you went on your daring escapade)
   • Private or Business (because we're all about that work-related charm)

Or, if you're feeling nostalgic for the good ol' days, grab a classic paper logbook from your friendly neighbourhood Officeworks.

Ok I've nailed Motor Vehicle Expenses. What else can I claim back on Tax?

You've mastered Motor Vehicle Expenses—congratulations! But don't slam the brakes just yet. Check out our post on everything else you can claim on tax. And if you have any burning questions, don't hesitate to shoot us an email at [email protected]. We're here to turbocharge your tax journey!

Happy tax-saving adventures, fearless road warriors!