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'' |
(a) first, until the end of the latest income year for which you rely on the log book to support your calculation of the business use percentage for the car; and
(b) then for another 5 years.
The period for which you must retain the log book is called the retention period .
9-2(2) [Commencement]The 5 years start on the due day for lodging your income tax return for that latest income year. If you lodge your return later, the 5 years start on the day you lodge it.
9-2(3) [Extension of retention period]However, the retention period is extended if, when the 5 years end, you are involved in a dispute with the Commissioner that relates to a deduction worked out using a business percentage that you are relying on the log book to support. See section 7-2 of Schedule 2B .
9-2(4) [Failure to retain log book]If you do not retain the log book for the retention period, you cannot deduct any amount worked out using a business percentage that you are relying on the log book to support. If you have already deducted such an amount, your assessment may be amended to disallow the deduction.
9-2(5) [Log book deemed record of expenses]For the purposes of the rules about retaining and producing records of expenses (see Division 7 of Schedule 2B ), the log book is treated as a record of the car expenses for each year for which you use a business percentage that you are relying on the log book to support.
9-2(6) [Loss of log book]If you lose the log book, there are rules that might help you in section 8-3 of Schedule 2B . For the purposes of the rules about relief from the effects of failing to substantiate (see Division 8 of Schedule 2B ), not doing something required by this Division is treated in the same way as not doing something necessary to follow the rules in Schedule 2B .
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