INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
Subject to this Subdivision, where a car was owned by, or leased to, a taxpayer during a period during a year of income and the number of kilometres travelled by the car during the year of income in the course of producing assessable income of the taxpayer was not more than 5,000, the taxpayer may elect that this subsection apply in relation to the car in relation to the year of income and, if the taxpayer so elects:
(a) the taxpayer is entitled to a deduction in respect of that year of income of the amount ascertained by multiplying the number of kilometres so travelled by the prescribed rate applicable to the engine capacity, expressed in cubic centimetres, of the car; and
(b) a deduction is not allowable, and shall be deemed never to have been allowable, under this Act to the taxpayer in respect of the whole or a part of a car expense that relates to the car and was incurred during the year of income unless the whole, or the part, of the car expense is or was an eligible expense in relation to which subsection 82KZBA(1) applies or has applied.
[ CCH Note: For prescribed rates for 1994/95 onwards, see CCH Note under s 3-2(1) of Sch 2A.]
In subsection (1), leased means leased under a lease for a term of not less than 12 months.