Despite public opinions that taxpayers are overclaiming their car deductions, recent research has uncovered that Aussies are largely underclaiming their car deductions simply because they find it hard to keep the required records.
Here’s the proof.
Excluding commuting and personal trips, aussie cars drive 31 billion km for work purposes every year. Aussie utes do a similar amount. That’s all claimable. Assuming the standard ATO deduction of $0.72 per km the actual claim should total $23 billion a year.
But ATO records indicate that only $7.1 billion km was reimbursed to taxpayers – that’s a gap of almost $16 billion left unclaimed.
It seems that most of us are frightened of ATO crackdowns, are too busy or just simply can’t deal with the paperwork. So, they miss out.
If you travel a lot of kilometres for work, it’s likely you’ll get a bigger deduction if you keep a logbook. You can still claim 5000 kms without a logbook but the maximum claim is $3,400, and, according to the ATO one in five car claims were exactly $3,400.
But the research suggests many aussies can claim more if they can diligently fill in a logbook. Its easy money any way you look at it. But do we do it? For most of us the answer is no.
Until now…
Enter GoFar.
GoFar is an Aussie device that just plugs into your car or ute (even one’s as old as 2007) and magically records all those mileage details for you. It is a game changer for anyone wanting to avoid logbook torture – and it can keep thousands in your bank account.
GoFar makes your ATO logbook dead simple!
And the best news?
Our friends at GoFar are offering our clients and associates $30 off the cost of an Unlimited subscription.
Click here and insert the Discount Code ADUNLIMITED to get $30 off
Need more expert advice on how to set up a logbook and keep the ATO happy? For just $49 (limited offer) we can get you all set up and explain the rules and pro’s and con’s.
Click here to make an appointment or see your local Accountants Direct representative.
Here’s what people are saying about GoFar.
Some is made up of cars/utes being corporately owned but this gets smaller every year as corporate fleets shrink. Some is made up by employees claiming miles not from the tax office but from their employer but that’s estimated at $3-5bn a year so however you look at it there’s a big underclaim because people think it’s hard to keep the right records
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.
