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Farid Zaki
  • Total posts: 110

Hi Kairtaka,

Your partner can claim a percentage % of all car expenses including depreciation (which is the cost of the car purchase spread over a number of years) of a used car. That % is determined by a log book that she needs to keep for a period of 12 weeks.

If she decides to lease a new car instead, she then claim the lease payments instead of the depreciation plus all the other car expenses.

If she decides to Hire Purchase (HP) she then claims the depreciation and interest paid to buy the new car.

I assume that she will be doing more than 5000kms for business and she will keep all receipts for running expenses therefore be able to claim the car under the logbook method and the car cost will not exceed $57180.00.