Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 28 - Car expenses  

Subdivision 28-J - Situations where you cannot use, or do not need to use, one of the 2 methods  

Operative provisions

SECTION 28-170   Exception for particular cars used in particular ways  

28-170(1)    

For particular types of *cars used in particular ways you don ' t need to use one of the 2 methods to calculate your deductions for *car expenses.

28-170(2)    

You may use one of the 2 methods, or you may instead calculate the deductions under the normal principles governing deductions, including the rules for apportioning a loss or outgoing that is only partly attributable to producing assessable income.

28-170(3)    

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, you provided the car for the exclusive use of one or more of the following: (a) your employees; (b) their *relatives; in circumstances where one or more of them was entitled to use the car for private purposes.
			Note:	This Subdivision also applies to entities that are not employers, but pay (or are liable to pay) withholding payments covered by subsection 28-185(3).