INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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''|
You must also keep a log book. Division 7 explains:
The log book is relevant to estimating the number of business kilometres the car travelled in the period when you held it during the income year.6-4(3) [Odometer records]
You must keep odometer records for the period when you held the car during the income year. Division 8 tells you about odometer records, which document the total number of kilometres the car travelled in that period.6-4(4) [Other written evidence]
(a) your estimate of the number of business kilometres; and
(b) the business use percentage.
However, the Commissioner may allow you to record the information later.6-4(5) [Retention of records]
You must retain the log book and the odometer records. Division 9 has the rules about this.
Note: For the definition of ``holding a car'' see section 11-3 .