Quick Accounting/Ato Question

[ronburgundy]

[nang3]

+1 to success, nothing like the govt saying 'We will only stitch you up X minus 10% instead of the full X this year" mwahaha

[smicky]

Mate,

Im not accountant.... but....

AFAIK - simple way to look at this is - are you required to take the PC home for work purpose?

Simple - Yes or no?

If there is not a car allowance or freight component or the likes from your employer (or even if there is but lets say its $10,000 a year and you actually spend $15,000 is related car/travel expenses for 'work related use).

Then best thing I would recommend is keeping a log book.

Keep a record of 3 months, log what what distance you travel for work, what distance you travel for private use, and then at the end of the year work out what percent it equals to if it was over the whole 12 months, rather then just the 3...

So - total years km's / 12 = X

3 months record / 3 * 12 = Y

Then work out the value of that which was traveled for work and private then you have the amount you 'should be' able to claim using the X and Y values.

Work back on the CPK rate of your car and you should be fine. If you want to get really detailed you could do it the way my account does - by totaling all expenses (fuel, wear and tare, repairs, servicing, tires blah blah) then works back the percentage of usage from there...

Mind you I claim well over the normal level as the car is used mostly for work travel.

Best recommendation would be speak to another accountant and call the ATO - they will be able to give you a definite answer.

At the end of the day - if its used in any way to generate income and you run an expense which is not reimbursed by the company then you should be able to claim back something...

Edited 03/10/09 12:58 PM by smicky

[smicky]

Remember if all goes wrong...

“I pay what I’m required to pay, not a penny more, not a penny less. If anybody in this country doesn’t minimise their tax, they want their heads read because, as a government, I can tell you you’re not spending it that well that we should be donating extra.”

Kerry Packer in 1991 at Senate:

[tab]

ummm...it's already resolved...

thanks for the replies guys !!! defo made me think about things and get back on the phone to my accountant... in the end I made him call the ATO and explain the entire situation and they said since its NOT a laptop then they agree its bulky and I can claim carting it back and forth !!

[smicky]

Woops my bad... didnt read that post...

have been away at a wedding at the hunter all weekend... so yeah... wedding, hunter... enough said I think...

Ill shut up now on this one...

Edited 04/10/09 07:48 AM by smicky

[nang3]

Remember if all goes wrong...

“I pay what I’m required to pay, not a penny more, not a penny less. If anybody in this country doesn’t minimise their tax, they want their heads read because, as a government, I can tell you you’re not spending it that well that we should be donating extra.”

Kerry Packer in 1991 at Senate:

now that is a great and true quote

[ronburgundy]

... and if you reckon interest rates are about to go 'through the roof' in the next 18 months, the standard variable rate when he made that statement was in the mid teens!