The ATO is concerned about taxpayers making mistakes or deliberately lodging false claims for work-related car expenses, and has announced it will be closely examining claims for these expenses in 2018 tax returns. Last year, around 3.75 million people made a work-related car expense claim, totalling about $8.8 billion.
The best way for to avoid mistakes is to make sure you follow “the three golden rules”, only making a car claim if:
- you paid for the expense yourself and you weren’t reimbursed;
- it’s directly related to earning your income – in other words, your employer required you to make the trips as part of your job; and
- you have a record to support your claim.