Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 28.45

             (1)   Using the "12% of original value" method, you deduct 12% of the cost of the * car when you acquired it, or 12% of its * market value when you first began to lease it.

Note 1:       The cost to a lessee of a luxury car to which Division 242 applies is to be worked out under section 242-20.

Note 2:       The cost of a car to which Division 240 applies is to be worked out under section 240- 25.

             (2)   But the most you can deduct using this method is 12% of the * car limit for the income year when you first used the * car for any purpose (if you own it) or when you first began to lease it.

Note:          Section 40- 230 deals with the car limit.

             (3)   Your deduction is reduced if you did not own or lease the * car for the whole income year. You can only deduct the amount worked out using the formula:

The full year car deduction is the amount you could deduct if you had owned or leased the * car for the whole income year.

A car-less day is a day when you did not own or lease the * car.