Tax and Superannuation Laws Amendment (2015 Measures No. 5) Act 2015 (162 of 2015)

Schedule 1   Modernising the car expense deduction rules

Part 2   Other amendments

Income Tax Assessment Act 1997

36   Subsections 40-370(3) and (4)

Repeal the subsections, substitute:

(3) In working out the *adjustable value for the income years for which you chose the "cents per kilometre method", assume the decline in value was calculated under this Division on the same basis as those income years when that method did not apply.

(4) In working out the reduction in step 2 for the income years for which you chose the "cents per kilometre method", assume that:

(a) you had not chosen that method for the *car; and

(b) Division 28 (about car expenses) had not applied to the car; and

(c) 20% was the extent of your use of the car for *taxable purposes.