The ATO has highlighted several misconceptions that commonly lead to incorrect claims under the cents per kilometre method for claiming deductions for car expenses.

Common errors include:

• Claiming travel between home and work, which is generally private and non-deductible;
• Automatically claiming 5,000 kilometres without the appropriate records (for example, being unable to show how the business kilometres were worked out);
• Claiming car expenses for a vehicle provided under a novated lease through a salary sacrifice arrangement;
• Separately claiming the decline in value of a car and other expenses when using the cents per kilometre method; and
• Using both the cents per kilometre and logbook methods for different periods during the income year.

Editor: Trips can be recorded using the myDeductions tool in the ATO app.  The app offers three tracking options: point-to-point, GPS and odometer.