When you can claim car expenses
You can claim a deduction for work-related car expenses if you use your own car in the course of performing your job as an employee, for example, to:
- carry bulky tools or equipment
- attend conferences or meetings
- deliver items or collect supplies
- travel between two separate places of employment (for example, when you have a second job)
- travel from your normal workplace to an alternative workplace and back to your normal workplace or directly home
- travel from your home to an alternative workplace and then to your normal workplace or directly home (for example, if you travel to a client’s premises).
If the travel was partly private, you can claim only the work-related part.
If you receive an allowance from your employer for car expenses, it is assessable income and the allowance must be included on your tax return.
Most people can’t claim the cost of travel between their home and their workplace because this travel is private. However, people doing itinerant work or who need to carry bulky tools or equipment that is used for work and can’t be left at the workplace can claim for driving between work and home.