Can you claim parking on tax?

You can claim a deduction for parking fees and tolls if they are incurred for work-related purposes.

This means that the parking must be necessary for you to perform your job.

However, there are certain conditions and limitations that apply.

When Can You Claim Parking Expenses?

These are the only conditions under which you can claim parking expenses on your tax:

1. Work-Related Travel: If your job requires you to travel to multiple work locations, such as client sites or different branches of your company, you can claim parking costs incurred during these trips. You need to keep detailed records of your travel, including dates, locations, and reasons for the visit.
   
2. Self-Employed Individuals: Self-employed individuals generally have more flexibility in claiming parking expenses. If parking is necessary for conducting your business activities, you can claim the full amount. This includes parking at client meetings, job sites, or while attending industry events.
   
3. Employees with Car Allowance or Reimbursement: If your employer provides a car allowance or reimburses you for car expenses, including parking, you generally cannot claim a deduction. However, if you incur additional parking costs beyond the reimbursement, you may be able to claim the excess amount.

What Parking Expenses Can You Claim?

You can typically claim the following parking expenses:

1. Parking fees: Costs incurred for parking your vehicle at client locations, job sites, or other work-related places.
2. Tolls: Fees paid for using toll roads or bridges for work-related purposes.

What Parking Expenses Can’t You Claim?

It’s important to note that not all parking expenses are deductible. The following are generally not claimable:

1. Parking at your regular workplace: This is considered a personal expense.
2. Parking fines: Penalties for parking violations are not deductible.
3. Commuting costs: Parking fees incurred while travelling to and from your regular workplace are not claimable.

How to Claim Parking Expenses

To claim parking expenses, you’ll need to keep detailed records. This includes:

1. Parking receipts: Keep all parking tickets and receipts as evidence of your expenses.
2. Travel log: Maintain a log of your work-related travel, including dates, locations, and reasons for the trip.
3. Odometer readings: Record the odometer readings of your vehicle to support your claims.

By accurately documenting your parking expenses, you can increase your chances of a successful claim.

How to Keep Records for Parking Expenses

Effective record-keeping is very important for claiming parking expenses. These are some ways to do it properly:

1. Use a dedicated notebook or digital app to record your travel and expenses.
2. Take photos of parking receipts if you lose the originals.
3. Review your records regularly to ensure accuracy and completeness.

Can You Claim Parking for Home Office Expenses?

If you operate a home-based business, you may be eligible to claim a deduction for a portion of your home expenses, including parking.

However, specific conditions apply, and you must meet the ATO’s requirements for a home office deduction.

Can You Claim Parking for Carpooling?

Generally, you cannot claim parking expenses if you carpool with colleagues to your regular workplace.

These costs are considered personal expenses.

However, if you carpool to a work-related location other than your regular workplace, you may be eligible to claim a portion of the parking costs.

Can You Claim Parking for Public Transport?

Parking expenses related to using public transport are not deductible.

Public transport costs themselves may be deductible under certain circumstances, but not parking associated with them.

Can You Claim Parking for Volunteers?

If you volunteer for a registered charity and incur parking expenses, you may be eligible for a tax deduction.

However, specific conditions apply, and you must meet the ATO’s requirements for volunteer expenses.