Car Expenses

Lindsey is frequently called upon to use his own motor vehicle to visit clients and to make regular court appearances.

Lindsey owns a BMW 340i M-Sports, which he purchased on 8 February 2020 (ie. in the previous income year) for $66,900.

Lindsey informs you that he maintained a logbook for a consecutive twelve-week period during the 2020 income year. At the end of the twelve weeks, the logbook revealed that Lindsey travelled a total of 4,040 kilometres, of which 1,414 were work-related. Lindsey tells you that this pattern of use is still relevant for the current year.

At 30 June 2020, the odometer shows a total of 6,926 kilometres representing the total distance travelled for the 144 days from 8 February 2020 to 30 June 2020 (see Note 2).

At 30 June 2021, Lindsey advises you that the closing odometer reading of the car was 24,481 kilometres and that there was no significant or material change in business usage during the 2021 financial year from the prior year. Lindsey travelled a total of 17,555 kilometres during the 2021 financial year.

Lindsey personally paid the following expenses in relation to his car for the 2021 income year:

$

• Registration 688
• Insurance 1,140
• RACQ membership fees 78
• Petrol and oil 3,142
• Car washing 416
• Minor repairs and general maintenance (all tax-deductible) 324
• Bridge tolls and parking fees (all work-related) refer Note 1 below 276

Lindsey advises you that he has kept receipts for all of the above expenses and wants to maximise any deduction in respect of his car use where possible.

Note 1: Lindsey was fully reimbursed by his employer for the bridge tolls and parking fees totaling $276 shown above relating to trips on the way to client meetings.

Note 2: A reminder that there were 366 days in the 2020 income year and that there are 365 days in the 2021 income year.