Commonwealth Numbered Acts

INCOME TAX ASSESSMENT ACT 1997 No. 38 of 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 hired it under a hire purchase agreement, or
12% of its market value when you first began to lease it.

(2) But the most you can deduct using this method is 12% of the motor vehicle
depreciation limit for the income year when you first used the *car for any
purpose (if you own it or are hiring it) or when you first began to lease it.
Note: Section 57AF of the Income Tax Assessment Act 1936 deals with motor
vehicle depreciation limits.

(3) Your deduction is reduced if you did not own, lease or hire the

*car for the whole income year. You can only deduct the amount worked out
using the formula:
full year car deduction x (365 - number of car-less days)
365

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

A car-less day is a day when you did not own, lease or hire the

*car.