Can You Claim Parking on Tax?

Types of parking tax deduction

You can claim parking expenses with the ATO if:

You're parking for work purposes. For example, at a client site or job location.
You're paying for work-related parking and are self-employed.
If you're self-employed, you can deduct expenses for work-related parking fees. This includes travelling between work sites or client meetings.

Note that parking expenses for commuting from your home to your regular workplace are not deductible.

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When you can claim tax deductions on parking

You can only claim tax deductions on parking if you’re travelling somewhere other than the office for work purposes or you’re self-employed and travelling to a work site in your vehicle.

If you pay parking costs for travelling to your usual work premises, like an office (or home if you’re self-employed), you can’t claim a tax deduction with the ATO.

How to claim parking expenses

You can claim parking expenses as a tax deduction by the logbook method or the cents per kilometre method.

The logbook method

The logbook method allows you to claim all expenses you’ve incurred. This includes parking costs.

Here’s a quick breakdown of all records you need to keep to claim parking expenses with the ATO using the logbook method:

The date of the expense
The amount of the parking cost
The location where you parked
The reason for parking (i.e., client meeting, job site)

The cents per kilometre method

This method is more straightforward. However, it doesn’t let you claim your parking expenses directly.

It instead provides a set rate per kilometre you travel for work purposes. This covers all your car expenses, including parking. The current rate is 88 cents per kilometre for the 2024/2025 financial year.

Claims are limited to 5,000 business kilometres per car.

How much parking can you claim on tax without receipts?

Without receipts, you can't claim parking deductions using the logbook method. The only way to do so is by using the cents per kilometre method.

Claiming using the logbook method requires detailed records of your parking fees. However, the cents per kilometre method doesn’t require receipts, as the rate you can claim includes all your car expenses, including parking.

Can I claim airport parking on tax?

You can deduct airport parking expenses, but it's only possible using the logbook method. The expenses must also be directly work-related.

If you travel overseas or within Australia for business reasons and park at the airport, those costs can be deducted since your trip is solely for work purposes. However, if your airport visit combines work and leisure, you cannot claim any deductions. Remember to maintain thorough records of your airport parking expenses with receipts to support your deduction claim.

Maximising your parking tax deductions

To maximise your tax deduction, it's essential to maintain precise records and utilize the ATO logbook approach. Check out these handy pointers for improving your parking deduction.

Keep accurate records

Keep a detailed logbook of your business kilometres and all the relevant receipts ready for tax day. Note down where you parked and why, as the ATO may audit your expenses.

Choose the logbook method

While the cents per kilometre method is simpler, the logbook method allows you to claim for individual expenses - including a parking tax deduction.

Talk to a tax professional

If you’re feeling overwhelmed with complex tax laws, consider talking to a tax professional who will help you get the most out of your parking-related tax deduction.