Income Tax Assessment Act 1997

Subdiv 28-E repealed by No 162 of 2015, s 3 and Sch 1 item 3, applicable in relation to the 2015-16 income year and later income years.

S 28-70 repealed by No 162 of 2015, s 3 and Sch 1 item 3, applicable in relation to the 2015-16 income year and later income years. S 28-70 formerly read:

SECTION 28-70 How to calculate your deduction  
28-70(1)
Using the " one-third of actual expenses " method, you deduct one-third of each *car expense.

28-70(2)
The expense must qualify as a deduction under some provision of this Act outside this Division (or would qualify if, throughout the income year, you had used the *car only in producing your assessable income). If only part of the expense would qualify, you deduct one-third of that part.

Example:

You borrow money to buy a car. You make repayments of principal and payments of interest.

You cannot deduct the repayments of principal because they are capital expenses.

The interest payments would be deductible in full if, throughout the income year, you had used the car only in producing your assessable income. Using the " one third of actual expenses " method, you can deduct one-third of the interest payments.

To find out whether an expense qualifies as a deduction under this Act, see Division 8 (Deductions).