INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision F - Substantiation of certain expenses of years of income up to and including 1993-94  

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SECTION 82KUD  

82KUD   AMOUNT OF DEDUCTION ALLOWABLE FOR CAR EXPENSES - LOG BOOK METHOD  
Subject to this Subdivision, the amount of a deduction allowable under this Act to a taxpayer in respect of a car expense relating to a car incurred by the taxpayer in a year of income where the car was held by the taxpayer during a period (in this section called the holding period ) in the year of income is:


(a) if the percentage calculated in accordance with the formula:


N   −   U


where:
  • N is the percentage applicable to the car specified in the taxpayer's car records for the year of income as mentioned in section 82KUB or 82KUC ; and
  • U is the percentage (in this paragraph called the reasonable percentage ) that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period;

    • is a percentage that:

    (i) if either of the following sub-subparagraphs apply:

    (A) the year of income is a log book year of income of the taxpayer in relation to the car;

    (B) the year of income is not a log book year of income of the taxpayer in relation to the car and the car is a low business kilometre car of the taxpayer in relation to the year of income;
    exceeds nil; or

    (ii) in any other case - exceeds 10%;
    the reasonable percentage of the amount of the exclusive business use deduction in respect of the car expense; or


    (b) in any other case - the percentage applicable to the car specified in the taxpayer's car records for the year of income, as mentioned in section 82KUB or 82KUC , of the amount of the exclusive business use deduction in respect of the car expense.

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