Apportioning expenses if you are carrying on a business

Even if your activity amounts to carrying on of a boat hire or charter business, you must take private use of the boat into consideration and apportion expenses appropriately.

Expenses relating to the taxpayer's personal use of the boat are not allowable deductions. Suggested methods of apportionment are contained in Taxation ruling TR 2003/4External Link as follows:

  • expenses directly attributable to private use are not allowed (e.g. fuel or catering)
  • variable expenses could be apportioned according to percentage usage (e.g. general maintenance)
  • fixed expenses unrelated to use of the boat could be apportioned based on period of time (e.g. interest and depreciation).
    Last modified: 14 Sep 2016QC 17113