INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

SCHEDULE 2A  

Calculating car expense deductions

TABLE OF DIVISIONS

1	Overview of the main points in this Schedule
2	Choosing which method to use
3	The ``cents per kilometre'' method
4	The ``12% of original value'' method
5	The ``one-third of actual expenses'' method
6	The ``log book'' method
7	Keeping a log book
8	Odometer records for a period
9	Retaining the log book and odometer records
10	Situations where you don't need to use one of the 4 methods
11	Definitions of ``car'', ``car expense'', ``holding a car'' and ``owning a car''

Division 10 - Situations where you don't need to use one of the 4 methods  

SECTION 10-3   FURTHER MISCELLANEOUS EXCEPTIONS  

10-3(1)   [Explanation]  

This section lists some miscellaneous cases where you don't need to use one of the 4 methods to calculate your deductions for car expenses.

10-3(2)   [Normal principles may be used]  

You may use one of the 4 methods, or you may instead calculate the deductions under the normal principles governing deductions, including the rules for apportioning an expense that is only partly attributable to producing assessable income.

10-3(3)   [Miscellaneous cases]  

The cases are as follows:

(a) the car was unregistered throughout the period when you held it during the income year, and during that period you used the car principally in the course of producing your assessable income; or

(b) at some time during the income year the car was part of the trading stock of a business of selling cars that you carried on, and you didn't use the car at any time during that year; or

(c) the expense is to do with repairs to or other work on the car, and you incurred it in the course of a business that you carried on of doing repairs or other work on cars.

In applying paragraph (a), the car is taken to be registered in a particular place while it is lawful to drive the car on a public road there.

Note: For the definition of ``holding a car'' see section 11-3 .