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 7 - Keeping a log book  

SECTION 7-5   REPLACING ONE CAR WITH ANOTHER  

7-5(1)   [Nominate replacement car]  

For the purposes of using the ``log book'' method, you may nominate one car as having replaced another car with effect from a day specified in the nomination.

7-5(2)   [Replacement car deemed original car]  

After the nomination takes effect, the replacement car is treated as the original car, and the original car is treated as a different car. This means that you do not need to repeat for the replacement car the steps you have already taken for the original car under this Division.

7-5(3)   [Nomination to be in writing]  

You must record the nomination in writing before you lodge your income tax return for the income year in which the nomination takes effect. However, the Commissioner may allow you to do it later.

7-5(4)   [Retention period]  

You must retain the nomination document until the end of the period for which you must retain the last log book that you began to keep for the original car before the day of effect of the nomination.

7-5(5)   [Application of sec 9-2]  

Section 9-2 applies to the nomination document in the same way as it applies to that last log book.