andrew63

Does anyone else do this?
Back in the UK, I got a fixed amount of money per mile when using my own car for Company use. About 30% more than petrol alone as it included depreciation caused by "busness" use, insurance, tax. etc. The rate was determined on engine size and affixed to the rate approved by the tax office.

Does such a rate table exist in Australia (QLD)?

Andrew

ABCDiamond

2003-2004 ATO rates are:

Engine capacity - Cents per kilometre

1600cc (1.6 litre) or less 51c per business kilometre
1601cc-2600cc 61c per business kilometre
2601cc (2.601 litre) and over 62c per business kilometre

These are rates that the ATO allow you to claim when claiming tax deductions, and have no relation to the amount an employer may pay, but can be used as a guide.

mlbonner

We have a new manager who's just joined us, he is using his private car but getting a subsidy on it for company use.
I know he went to an accountant to work everything out, but from what he has just said there were four different methods that you can claim on, and it is up to you to find the best way. I know its obvious, but have you checked the ato website??

jad n rich

Doing tax today, have this right here re the 4 methods are.

Log book

12% of market value

One third of car expenses

Set rate/Business KM


I just give all log books to acct and he sorts out best method to use for each person.

andrew63

Thanks all!

Erick, do you have link for that? I couldn't find anything like that on the ATO site.

ANdrew

mlbonner

Not sure if its where ABC got his info from, but is this one any good?
ATO

ABCDiamond

When you spend as much time with the ATO as I have, you get to know where to look


http://www.ato.gov.au/individuals/pa...20#001_002_013 then select car expenses

Hope that gets you there, but if not:

http://www.ato.gov.au/individuals/
then select:
What you can claim
Deductions list

then:
Work related expenses
Car expenses

andrew63

Thanks for that.
I note that this is for claiming from the Tax Office.
So in Australia an employee claims the mileage from the tax office as part of his/her tax return rather than from their employer? Is that correct?

Andrew

ABCDiamond

Not really.

What normally happens is that the employer pays whatever figure is agreed upon, between employer and emloyee, or the union.

The employee then declares that as income in their Tax Return, but offsets the ATO prescribed figures as a Tax Deduction.

Therefore if the employer pays the same rate as the ATO allows, then it balances out tax wise.

If the employer pays nothing, then the employee at least gets back a % of the ATO figure, based on the Tax Bracket they are on.

If the employer pays more than the ATO rate, then the employee has more tax to pay

mlbonner

I do the office management before its processed by accounts, and on our new guys contract it states $salary + $super + $agreed car subsidy = total to Manager; which would be what you're saying I think.

ABCDiamond

You could do what I did.

Just tell them to give you a decent car and an unlimited Motorpass fuel card