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 10 - Situations where you don't need to use one of the 4 methods  

SECTION 10-2   EXCEPTION FOR PARTICULAR CARS USED IN PARTICULAR WAYS  

10-2(1)   [Other methods allowed]  

For particular types of cars used in particular ways you don't need to use one of the 4 methods to calculate your deductions for car expenses.

10-2(2)   [Normal deduction principles]  

You may use one of the 4 methods, or you may instead calculate the deductions under the normal principles governing deductions, including the rules for apportioning an expense that is only partly attributable to producing assessable income.

10-2(3)   [Application]  

This section applies if, whenever you used the car in the income year:

(a) the car was covered by the description in column 2 of an item in the table below; and

(b) you used the car as described in column 3 of that item.

Item	Column 2 Particular car	Column 3 Exempt use
1.	The car was:	You used the car only in one or more of the following ways:
	(a)	a panel van or utility truck; or	(a)	in the course of producing your assessable income;
	(b)	any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed principally to carry passengers); or	(b)	to go between your residence and a place where you use the car in the course of producing your assessable income;
	(c)	a taxi.	(c)	by providing the car to someone else to drive between his or her residence and a place where the car is used in the course of producing your assessable income;
			(d)	for the purpose of travel that is incidental to using the car in the course of producing your assessable income;
			(e)	for your own or someone else's private use that was minor, infrequent and irregular.
2.	The car was part of the trading stock of a business of selling cars that you carried on.	You used the car in the course of the business.
3.	The car was any type of car.	You let the car on lease or hire in the course of a business of letting cars on lease or hire that you carry on.
4.	The car was any type of car.	As an employer (as defined in section 221A), you provided the car for the exclusive use of one or more of the following:
			(a)	your employees (as defined in section 221A);
			(b)	their relatives;
			in circumstances where one or more of them was entitled to use the car for private purposes.