In some cases, you may wish to claim mileage rather than a proportion of your Motor Vehicle Expenses. In order to claim mileage, you MUST maintain a logbook to work out how many kms you have travelled for business vs personal use.
You will need to record the distance, date and reason for the trip in the logbook. You can use the difference between the odometer readings at the start and end of the three months to work out the percentage of vehicle expenses you can claim.
This logbook template will help you to determine the percentage of claimable mileage over the course of the financial year.
There are two ways you can calculate the proportion of your motor vehicle business use. You can either use actual costs (see Motor Vehicle Expenses), or a logbook. NB: You cannot claim for both running costs (petrol, etc) AND mileage. It's an either/or situation.
How to Calculate Kilometre rates
Once you have calculated the business proportion you can choose to use kilometre rates to calculate the amount of allowable expense for the cost of using your motor vehicle for business purposes. You can do this by using the following calculation:
kilometre rate x kilometres travelled x business proportion
- kilometre rate is one of the rates below
- kilometres travelled is the total number of kilometres travelled for business and personal purposes
- business proportion is calculated, using actual records or the logbook method, as a decimal.
Use the Tier One rate for the business portion of the first 14,000 kilometres travelled by the vehicle in a year. This includes private use travel.
Use the Tier Two rate for the business portion of any travel over 14,000 kms in a year.
In the Expense section of your dashboard, you need to raise this under the "Mileage" category, making sure to state the number of kms you are claiming in the Expense Description.
Make sure you have calculated the amount claimable based on the above calculation and rates.
- Mileage costs do not include GST so make sure you raise these correctly
Once you have maintained a logbook for a few months, you may wish to switch to claiming a percentage of each Motor Vehicle expense rather than continuing to maintain a logbook and claiming mileage, but it is completely up to you.