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Chris Brodie
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Hi Leisa,

In regards to the car expenses, depending on how many km are involved, it may be easier to just use the set rate per km method. Here you will only need to record a diary note of the km travelled. Otherwise you can use the log book and work out the percentage of business use, but you will also need to keep a record of all motor vehicle expenses. That is why I sometimes suggest using the set rate per km method if the number of km is small.

In regards to the other expenses, work boots etc, you may need to balance things out. If your partners has normal PAYG withholding income that he can claim these expenses against, then there maybe more benefits in claiming them as “deduction” in the tax return. If the income from the business on the side is only small, you do not wan’t your expenses exceeding the income because the resulting loss will not be claimable under the business loss provisions. i.e. his business on the side needs to make money to claim the deductions.

I hope this helps,