Motor vehicle expenses are among the most commonly claimed deductions by General Practitioners (GPs). Self-employed GPs typically claim these expenses for travel between their practice and a hospital, when making house calls, or when transporting bulky medical equipment. The ATO has issued specific guidelines detailing what GPs can and cannot claim for car expenses. Let’s explore a few crucial points:
❌ What You Can’t Claim
- You can’t claim the cost of everyday trips between home and work or their regular practice, even if you live far away and practice outside regular business hours
- You can’t claim a deduction for parking at or near a regular place of work. You also can’t claim a deduction for tolls you incur for trips between your home and regular place of work/practice.
✅ What You Can Claim
- You can claim the cost of using your car when driving directly between separate jobs on the same day. For example, driving from your main workplace as GP to your second job as a university lecturer.
- Alternate Workplaces: to and from an alternate workplace for the same employer on the same day – for example, travelling to different hospitals or medical centres
- Transporting Bulky Tools or Equipment: In limited circumstances, you can claim the cost of trips between home and work if you carry bulky tools or equipment that are essential for your job. This applies if:
- The tools or equipment are essential for your work and not carried by choice.
- The tools or equipment are bulky and awkward to transport, making it necessary to use a car.
- There is no secure storage for the items at your workplace.
Methods to Claim Car Expenses
- Logbook Method:
- Keep a valid logbook to track the percentage of work-related use.
- Maintain written evidence of your car expenses.
- Cents Per Kilometre Method:
- Show how you calculated your work-related kilometres.
- Ensure those kilometres were for work-related purposes.
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