how much fuel can you claim on tax

Ah, the thrilling world of tax deductions and fuel claims—an absolute page-turner! In Australia, how much fuel you can claim depends heavily on your business use of the vehicle. Essentially, you can claim the portion of fuel expenses that relate directly to your work, but not the leisurely Sunday drives to the beach.

The Australian Taxation Office (ATO) allows two methods: the cents per kilometre method (up to 5,000 km) or the logbook method which requires detailed records but can yield a more precise claim. Currently, the cents per kilometre rate is about 72 cents per km—covering fuel, maintenance, and depreciation.

Keep your receipts and logbooks handy, lest the taxman turns that claim into a horror story. For more detailed guidance, consult the ATO website or ServiceCentral.