Fewer ways to claim car expenses in budget

Assistant Treasurer Josh Frydenberg says the budget will cut the number of ways work-related car expenses can be claimed from four to two.

The federal government is streamlining the way Australians claim work-related car expenses on tax. (AAP)

The federal government is halving the number of ways Australians can claim work-related motor vehicle expenses from the tax office.

There are various ways to claim a tax deduction: cents per kilometre; a logbook; 12 per cent of a car's original value; or one-third of actual expenses.

The last two will be discontinued because they are used in less that two per cent of cases, Assistant Treasurer Josh Frydenberg said on Monday.