Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p26
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 26/37)
Character Range: 456959–459533

per kilometre" method
28‑F The "log book" method
28‑G Keeping a log book
28‑H Odometer records for a period
28‑I Retaining the log book and odometer records
28‑J Situations where you cannot use, or do not need to use, one of the 2 methods

Guide to Division 28

28‑1  What this Division is about
      This Division sets out the rules for working out deductions for car expenses if you own or lease a car or hire a car under a hire purchase agreement.

Table of sections
28‑5 Map of this Division

28‑5  Map of this Division

Subdivision 28‑A—Deductions for car expenses

Table of sections
28‑10 Application of Division 28
28‑12 Car expenses
28‑13 Meaning of car expense

28‑10  Application of Division 28
 (1) This Division applies to an individual.
 (2) It also applies to a partnership that includes at least one individual, as if the partnership were an individual.
 (3) It does not apply to any other entity.

28‑12  Car expenses
 (1) If you owned or leased a *car, you can deduct for the car's expenses an amount or amounts worked out using one of 2 methods.
Note 1: For particular types of cars taken on hire you cannot use one of the 2 methods: see section 28‑165.
Note 2: In certain circumstances the lessee of a luxury car is taken to be its owner (see subsection 242‑15(2)).
Note 3: In certain circumstances (for example, under a hire purchase agreement) the notional buyer of property is taken to be its owner (see subsection 240‑20(2)).
 (2) You must use one of the 2 methods unless an exception applies. If you can't use either of the methods, you can't deduct anything for the *car expenses.

28‑13  Meaning of car expense
 (1) A car expense is a loss or outgoing to do with a *car.
 (2) In addition, any of the following is a car expense:
 (a) a loss or outgoing to do with operating a *car;
 (b) the decline in value of a car.
 (3) None of the following is a car expense:
 (a) a loss or outgoing incurred, or a payment made, in respect of travel outside Australia;
 (b) a taxi fare or similar loss or outgoing.

Subdivision 28‑B—Choosing which method to use

Guide to Subdivision 28‑B

28‑14  What this Subdivision is about

      This Subdivision sets out the rules about choosing a method of calculating car expense deductions.

Table of sections
28‑15 Choosing between the 2 methods

Operative provision
28‑20 Rules governing choice of method

28‑15  Choosing between the 2 methods
 (1) Below is a diagram giving information about the 2 methods of calculating car expense deductions.
 (2) The 2 methods give you the choice of which method best suits your