Alex Collier, Accountant
Claiming car expenses will change dramatically from 1 July 2015.
The one third expenses and 12% of cost methods will be removed. Further, the cents per kilometre method will be reduced to a single rate of 66 cents per kilometre regardless of engine size. Now, individuals will only be able to choose between the cents per kilometre method or logbook method to claim car expenses.
Tactica recommends that you complete a logbook for your vehicle if you have been claiming the one third or 12% cost method in order to expand the possible deductions available for 2016. This is done by maintaining a logbook for a continuous 12 week period and specifying business and personal travel.
There are several ATO approved digital apps available that help you maintain a Logbook. We suggest exploring the various apps when to help complete your logbook. Two of these apps include ATO Vehicle Logbook and Logbook Me.
If you would like more information about changes to logbook deductions please contact Tactica Partners on 9387 5637.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
Mark has helped us immensely to understand our financial position, these guys are not just tax agents, they fully understand all aspects of business.
Daniel and his team at Tactica Partners have been taking care of me, my family and my company's accounting needs and I highly recommend him and the team. They've made getting tax done so easy and Daniel is an amazing accountant and extremely thorough and helpful.
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Mark H and Helen have given us wonderful support for our family and business accounting for several years now. When I got my first invoice I grumbled……. not now. We can see the savings and feel the security for ourselves.