Motor vehicle tax deductions are on the up this year.
Those looking to claim motor vehicle expenses in the 2018/19 financial year should be aware the rate for work-related expenses is now 68 cents per kilometre.
This applies to eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for work-related car expenses.
You can claim up to 5,000 business-related kilometres without needing supporting evidence, but you could be asked to show how you worked out your rate. Simply calculate your total business kilometres for the year (up to a maximum of 5,000km) and multiply that figure by 68 cents. This calculation will also take into account all running expenses for the car.
Home office tax deductions are on the up this year.
Home office running expenses have also been given a boost this year with the hourly rate increased from 45 cents per hour to 52 cents per hour for the 2018/19 financial year. Using the rate per hour method includes all running expenses for the home office, including things like electricity and air conditioning, and takes into account depreciation of any home office furniture. Taxpayers using this method must keep a record of hours worked from home, either as an annual figure, or as a four-week log book if hours are regular. If you run a home office, talk to your adviser at dmca about what expenses you might be able to claim for this activity.