We’ve received lots of training course inquiries from new business in this last couple of months and a question that came up recently was “do you have a course that explains how much I can claim”. The person was asking about how much of the cost of their car can they claim as an expense because they use it for their business.

The answer to this question reminded me of how “flexible” the taxation laws are in Australia. You can “claim” any amount that you want and unless you are audited by the ATO you could possibly get away with it!!

The correct way is to determine how much of your costs are actually associated with your business and use that percentage. The ATO goes on to explain how to do this in detail.