Private ruling: WRE-Vehicle expenses
Published: August 2017
Ruling period: Year ended 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Q1: Are you entitled to a deduction for work-related car expenses using the cents per kilometre method? | A1: Yes

Relevant facts and circumstances: During the period from July to September 2015 you were employed in a particular field. You used your vehicle to travel between work places where different pieces of machinery needed to be worked on as well as having to travel to a different work place to operate a separate piece of machinery. You always carry all your equipment in case at any time you are required to work on the piece of machinery you are operating or if another piece of machinery breaks down. You have not kept a log book for the vehicle.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Work related car expenses are deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. Application to your circumstances In your case, you were required to use your vehicle for work purposes during the period July to September 2015. Vehicle expenses were incurred in gaining assessable income. Your circumstances allow your vehicle expenses to be deductible. You are therefore entitled to a deduction for the cost of this travel, using the cents per kilometre method.