Milage claims - GST on business kilometres
The ATO allows businesses to claim the GST on cents per kilometre based on the business Kilometres travelled. The Milage claim in Xero currently does not have any tax category which means milage claims aren't showing on the GST reports and have to manually added to the BAS otherwise businesses are missing out on GST if not added manually.
For example, If staff travel 100kms for business, then the claim should reflect the following
100 kms x rate of 88cents (FY2026) totalling to $88. the $88 is inclusive of GST of $8.
Camilla Yosufi
shared this idea
Hi Camilla👋, we understand the importance of being able to track and claim GST on business mileage and appreciate you letting us know this functionality isn't available within Xero. We know that not having this feature causes extra work to manually calculate the GST on mileage claims. While we don't have this feature at the moment, we’d like to acknowledge the workarounds of manually calculating the GST component of the mileage claim and entering this as a separate line item when processing the expense claim. We understand this isn't ideal and adds extra work, but it may help for now. We're still actively monitoring this idea to see how much support it gets from our customers 👀. As always, we'll continue to provide updates as we have them. Please continue to share your feedback and vote for the idea! ✅
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Camilla Yosufi
commented
The GST selection in already available for expense claims so why would it be difficult to simply add what is already available to the milage claim?
Educating staff with no GST understanding to separate the tax line is not only an inadequate option but an unrealistic workaround. The accounts team would have to intervene and manually amend each claim before the claim is approved by their managers. Given there is no option to amend an expense claim or milage claim after approval means companies are losing out on GST claimable due to a selective software incapability despite the GST option being available in expense claims.
The time and cost to add GST to milage claim is minimal compared to the proposed workaround suggest for companies to constantly amend milage claims and produce additional GST Workpapers.
The Xero subscription prices have already increased but were not receiving any real additional value as an end user.