| Income Tax ? Car Expenses - Cents per Km method |
| Cents per Kilometre Method |
| Car Size
| Rotary Engine
| Conventional Engine (Non-rotary)
| Rates Per Kilometre 01/02
| Rates Per Kilometre 02/03
| | Small
| 0-800cc
| Up to 1,600cc
| 49.3c
| 50.0c
| Medium
| 801-1,300cc
| 1,601-2,600cc
| 59.0c
| 60.0c
| Large
| 1,300cc +
| 2,601cc +
| 60.0c
| 61.0c
| | |
The set rate per kilometre method can be adopted any time. A claim of up to 5,000 business kilometres will be allowed where the vehicle travels more than 5,000 business kilometres during the financial year. Substantiation is not required but claims must be based on a reasonable estimate.
12% of Cost
A deduction will be allowed based on a 12% of the cost of the vehicle subject to the depreciation cost limit. For the 2003/2004 year, the limit is $57,009 (the same as 2002/2003). The deduction will be reduced in proportion with the number of days in the year the vehicle was not owned or leased by the taxpayer. The deduction is based on the cost of the car when acquired or if under lease, the market value when the lease was taken out.
20th-March-2004 |
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