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).


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.