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 3 - The ``cents per kilometre'' method  

SECTION 3-2   HOW TO CALCULATE YOUR DEDUCTION  

3-2(1)   [Basis of calculation]  

To calculate your deduction using the ``cents per kilometre'' method, you multiply:

• the number of business kilometres the car travelled in the income year;

by:

• a number of cents based on the car's engine capacity.

The number of cents can be found in the regulations.

3-2(2)   [Limited application]  

But you can use this formula for the first 5,000 business kilometres only. If the car travelled more than 5,000 business kilometres, you must discard the kilometres in excess of 5,000.

Example:

If the car travelled 5,085 business kilometres, you could claim for 5,000, and would lose the extra 85.

3-2(3)   [Business kilometres travelled]  

Business kilometres are kilometres the car travelled in the course of producing your assessable income. You calculate the number of business kilometres by making a reasonable estimate.