Western Australian Consolidated Regulations

PAY-ROLL TAX ASSESSMENT REGULATIONS 2003 - REG 32

32 .         Choosing a method for calculating business kilometres

        (1)         The employer may use the continuous recording method to calculate the number of business kilometres travelled by the vehicle during any period.

        (2)         The employer must use the continuous recording method to calculate the number of business kilometres travelled in the vehicle during a period if the employer —

            (a)         has not previously paid a vehicle allowance for the vehicle;

            (b)         has been using only the averaging method for the vehicle for 5 years and has not completed a further continuous recording period; or

            (c)         the Commissioner gives the employer a direction under regulation 36.

        (3)         The employer may use the averaging method to calculate the number of business kilometres travelled in the vehicle during a return period if —

            (a)         the employer has used the continuous recording method for the vehicle for at least 12 consecutive weeks immediately before changing to the averaging method;

            (b)         the employer has kept a record of the vehicle’s odometer readings at the beginning and end of the continuous recording period;

            (c)         the frequency and length of the business journeys made in the vehicle during the continuous recording period can reasonably be expected to be the same as the business journeys made during any similar period within the next 5 years; and

            (d)         a BK percentage calculated under regulation 35(2) is in force for the vehicle.

        (4)         If the employer is unable to use the continuous recording method or the averaging method for a period, the number of business kilometres travelled by the vehicle during the period is taken to be —

            (a)         if the Commissioner allows the employer to estimate the number of business kilometres travelled by the vehicle during that period and considers the employer’s estimate to be reasonable — the employer’s estimate of that number;

            (b)         if the Commissioner specifies a number which is deemed to be the number of business kilometres travelled by the vehicle during that period — the number specified; or

            (c)         otherwise — zero.

        (5)         An employer who pays motor vehicle allowances to more than one person may use different methods of calculation for each person.

        (6)         When an employer chooses to use a particular method of calculation the employer must make a record of the choice before the end of the return period during which the choice takes effect.