| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011600803299
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Work-related car expenses
Question
Are you entitled to a deduction for work-related car expenses using the cents per kilometre method for the use of a car registered in your spouse's name?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 2010
Year ending 30 June 2011
Year ending 30 June 2012
Year ending 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
The scheme commences on:
1 July 2009
Relevant facts and circumstances
You own a motor vehicle equally with your spouse as you both paid for it.
You use the motor vehicle for work-related reasons.
The motor vehicle is registered under your spouse's name as it is not possible under state legislation to register a vehicle under two names.
You claimed motor vehicle expenses in the income year using the cents per kilometre method.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 28-12.
Reasons for decision
Summary
You are entitled to a deduction for car expenses using the cents per kilometre method even if the motor vehicle is registered under your spouse's name as you have been able to demonstrate that you have ownership of the car.
Detailed reasoning
Section 28-12 of the Income Tax Assessment Act 1997 provides that a deduction for car expenses can be made using one of four methods if the taxpayer owned or leased a car or hired a car under a hire purchase agreement.
Normally a car will be registered in the name of its owner. However, a taxpayer may be considered to be the owner or lessee of the car where a family or private arrangement makes them owner or lessee even though they are not the registered owner.
A taxpayer can prove ownership of the car by demonstrating their financial contributions to any of the following:
· the initial purchase of the car
· lease payments
· hire purchase agreements, or
· loan payments.
A taxpayer may not be considered to own or lease the car if they do not contribute to the payment of one of the above, even though the taxpayer pays for expenses such as registration, insurance, maintenance or other running costs. This does not prevent the taxpayer from claiming a deduction for the expenses they pay, but they cannot use one of the four car expenses methods in doing so.
As you contributed financially to the purchase of the car then you are considered to own the car. You are therefore entitled to claim a deduction for car expenses using the cents per kilometre method.