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Item D1 - Work-related car expenses

See Item D1 work-related car expenses on the ATO website for further information.

Label A - Work related car expenses

If you used your motor car for work-related purposes, then to claim the expense, you must complete item D1.

Click label A to open the Motor vehicle worksheet (mve).

From 1 July 2018, if you have work-related motor vehicle expenses, the ATO requires you to lodge a Deductions schedule (DDCTNS, Tax schedule code ds):

  • The ATO requires details of the motor vehicle, so use the Motor vehicle worksheet (mve) so that we transmit the correct details via PLS.
  • Complete the mve in the usual way. However, there are new rules about the order that you enter the claim method:
    • If you have more than one motor vehicle, and you are claiming a deduction using the cents per km method for more than one of those cars, the ATO advises that you should enter all the cents per km claims before any logbook method claims.
  • Enter amounts in dollars and cents and we'll round them when calculating the total for the return and schedule fields.

ATO requirements for consolidation

If you have more than 10 motor vehicle worksheets (mve), motor vehicles using the cents per kilometre method integrate to the DDCTNS first, in descending order (highest km number to lowest kn number), followed by the log book method. This helps the consolidation record to not breach the 5,000 km limit.

Other changes are the:

  • gross depreciation and gross amount excluding depreciation aren't reduced by the business %
  • business kilometres travelled field contents are not lodged with the ATO.
  • expenses can be entered in dollars and cents
  • Repairs and maintenance is now known as Repair expenses
  • totals in this form don't lodge to the ATO. We use them to cross reference amounts in the individual income tax return.

If you've allocated part of the depreciation expenses for the motor vehicle to item D1, the amount allocated in the Motor vehicle worksheet (mve) passes to the Depreciation worksheet (d).

When you close the worksheet, MYOB Tax will:

  • update the value at D1
  • default the correct action code for the deduction (this is always the code of the method that gives you the best outcome)
  • passes the values required by PLS to the DDCTNS.

Details and amounts lodged via PLS:

  • Return label D1
  • Deductions schedule (DDCTNS)

Schedule W - work-related expenses

If the ATO has expressly advised your practice, or an agent of your practice, to lodge the Schedule W where work-related expenses for your individual clients exceed $300, then you need to check what your RSD default rollover settings are for Schedule W and alter them accordingly. See Work related expenses - ATO Schedule (W) .

Under these circumstances the ATO expects to receive both the Schedule W and the Deductions schedule (DDCTNS)

CCH References

16-310 Deductible motor vehicle expenses

16-320 Substantiation rules for car expenses

16-340 The logbook method and obtaining written evidence of car expenses

16-370 Cents per kilometre method for substantiating car expenses

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