INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Subject to subsection (3), for the purposes of the application of this Subdivision (other than section 82KW , 82KX or 82KY) to a car expense, where a taxpayer, in the taxpayer's car records for a year of income, nominates a particular car (in this section called the replacement car ) as having replaced another car (in this section called the original car ) with effect from a specified date in the year of income:
(a) the original car shall be treated, with effect from that date, as a different car; and
(b) the replacement car shall be treated, with effect from that date, as the same car as the original car.
A nomination shall specify the make, model and registration number (if any) of the original car and of the replacement car.82KTJ(3) [Application re deduction for car expense]
Subsection (1) does not apply for the purposes of determining the deduction that, apart from this Subdivision, would have been allowable under this Act in respect of a car expense.82KTJ(4) [Car predecessor of second car]
(a) a car is a predecessor of a second car if the second car replaced the first-mentioned car for use in the course of producing assessable income of the taxpayer concerned; and
(b) a car is a predecessor of a second car if a third car is a predecessor of the second car and the first-mentioned car is a predecessor of the third car (including a case where the first-mentioned car is a predecessor of the third car by another application or applications of this paragraph). 82KTJ(5) [Car held pending its replacement]
For the purposes of this Subdivision, a car shall not be treated as a car held by a taxpayer pending its replacement, for use in the course of producing assessable income of the taxpayer, by another car unless both cars are held at the same time.82KTJ(6) [Time original car held: deduction for car expenses]
For the purposes of subparagraphs 82KUB(a)(ii) and (iii) and (b)(i) and (ii) , where:
(a) at a particular time, a taxpayer ceases to hold a particular car (in this subsection called the original car ); and
(b) after that time, the taxpayer commences to hold another car as a replacement, for use in the course of producing assessable income of the taxpayer, for the original car;
the taxpayer shall be treated as having held the original car until that later time.