From 1 July 2015 there will only be one method for owners to claim motor vehicle expenses for work related use. The maximum 77c per kilometer for large vehicles and 65c for small vehicles will be abolished and replaced with a flat rate of 66c per kilometer. Owners of hybrid and electrically powered vehicles will also now be entitled to the 66c per kilometer reimbursement.
For employees who use private motor vehicles extensively, and claim over $5,000 per annum for motor vehicle usage at work will still need to complete Log Books.
The 12% of original value method and the 33% of actual expenses methods will be abolished.
Responsibility for reviewing the rate will move from Treasury to the Commissioner for Taxation and will be reviewed annually.
Leasing and salary sacrificing of motor vehicles will be unaffected.
re-printed with the permission of WilliamsonLegal