Australian Tax Office flags car claim errors ahead of EOFY

The Australian Tax Office is increasing scrutiny of vehicle‑related tax deductions as the end of the financial year approaches. Accountants warn that common mistakes include claiming daily commuting trips, deducting 100 % of fuel costs, using inaccurate logbooks, and purchasing a car solely for tax benefits. The ATO may request additional evidence if claims appear disproportionate to a taxpayer’s occupation, and the burden of proof rests with the taxpayer.

Tax advisors also stress the importance of proactive EOFY planning before 30 June. Strategies such as reviewing trust distributions, managing Division 7A loan exposures, timing capital‑gain events, making concessional super contributions and adjusting the timing of income and expenses can materially improve after‑tax results. Early planning provides clearer cash‑flow forecasts, reduces the risk of ATO audits and helps taxpayers align tax decisions with broader financial objectives.