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 9 - Retaining the log book and odometer records  

SECTION 9-2   RETAINING THE LOG BOOK FOR THE RETENTION PERIOD  

9-2(1)   [Retention period]  

You must retain the log book:

(a) first, until the end of the latest income year for which you rely on the log book to support your calculation of the business use percentage for the car; and

(b) then for another 5 years.

The period for which you must retain the log book is called the retention period .

9-2(2)   [Commencement]  

The 5 years start on the due day for lodging your income tax return for that latest income year. If you lodge your return later, the 5 years start on the day you lodge it.

9-2(3)   [Extension of retention period]  

However, the retention period is extended if, when the 5 years end, you are involved in a dispute with the Commissioner that relates to a deduction worked out using a business percentage that you are relying on the log book to support. See section 7-2 of Schedule 2B .

9-2(4)   [Failure to retain log book]  

If you do not retain the log book for the retention period, you cannot deduct any amount worked out using a business percentage that you are relying on the log book to support. If you have already deducted such an amount, your assessment may be amended to disallow the deduction.

9-2(5)   [Log book deemed record of expenses]  

For the purposes of the rules about retaining and producing records of expenses (see Division 7 of Schedule 2B ), the log book is treated as a record of the car expenses for each year for which you use a business percentage that you are relying on the log book to support.

9-2(6)   [Loss of log book]  

If you lose the log book, there are rules that might help you in section 8-3 of Schedule 2B . For the purposes of the rules about relief from the effects of failing to substantiate (see Division 8 of Schedule 2B ), not doing something required by this Division is treated in the same way as not doing something necessary to follow the rules in Schedule 2B .