Are tolls car or travel expenses? Private roads, freeways and bridges charge tolls, which by the way include GST. But how do you disclose these tolls in your tax return. And why does it matter?
Are Tolls Car or Travel Expenses
The short answer is: Travel. They are travel expenses. So you include them in your travel diary and they are not affected by the business use percentage for your car.
And it makes sense when you think about it. If they were car / motor vehicle expenses, then they would either be covered by the 66 cents/km or would have a business use percentage applied to them. But a trip incurring road or bridge tolls might be 100% for business even though you also use the car for private purposes. So treating tolls as travel expenses makes sense.
Employees
If you are an employee and you incurred the etolls while travelling for work as an employee, then you need to specify your work related car expenses in D1 and your work related travel expenses in D2. So you put tolls into D2.
… travel expenses you incur in performing your work as an employee… include:…bridge and road tolls, parking fees and short-term car hire – ATO website
Sole traders
If you are a sole trader, the supplement for your business income in 15 “Net income or loss from business” / P8 “Business income and expenses” in Schedule B wants to see your motor vehicle expenses and your travel expenses. .
So you list tolls as travel expenses. Just as you would do as an employee.
Company
In the Company Tax Return under 6 Calculation of total profit or loss you specify your motor vehicle expenses in Field Y and your other expenses in S. So you put tolls into field S.
Trust
In the Trust Tax Return under 5 Business Income and expenses you specify your motor vehicles in Field L and your other expenses in Field N. So you list tolls under N.
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So after all this just remember Tolls = Travel. Or even easier:
T = T
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Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.
Last Updated on 23 March 2020
