Australian Capital Territory Repealed Acts Australian Capital Territory Repealed ActsThis legislation has been repealed.
Schedule 2 Motor vehicle allowances
(s 3C (5))
2.1 Meaning of business journey —sch 2
In this schedule:
"business journey" means—
(a) a journey undertaken in a motor vehicle by a person otherwise than in the application of the vehicle to a private use, that is an application that, if the person is paid a motor vehicle allowance for the use, results in the provision of a fringe benefit (under the Fringe Benefits Tax Assessment Act 1986 (Cwlth)) by the employer; or
(b) a journey undertaken in a motor vehicle by a person in the course of producing assessable income of the person (under the Income Tax Assessment Act 1936 (Cwlth)).
2.2 Continuous recording method
If an employer selects the continuous recording method for calculating the number of business kilometres travelled during a financial year, the following details are required to be recorded by the employer:
(a) the odometer readings at the beginning and end of each business journey ("relevant business journey") undertaken by the person during the financial year by means of a motor vehicle provided or maintained by the person;
(b) the specific purpose for which each relevant business journey was taken;
(c) the distance travelled by the person during the financial year in the course of all relevant business journeys (which is taken to be the number of business kilometres travelled during the financial year ), calculated on the basis of the odometer readings mentioned in paragraph (a).
(1) If an employer selects the averaging method for calculating the number of business kilometres travelled during a financial year, the following details are required to be recorded by the employer:
(a) the odometer readings at the beginning and end of each business journey ("relevant business journey") undertaken by the person during the relevant 12-week period by means of a motor vehicle provided or maintained by the person;
Note Section 2.4 defines the relevant 12-week period.
(b) the specific purpose for which each relevant business journey was taken;
(c) the distance travelled by the person during the relevant 12-week period in the course of all relevant business journeys, calculated on the basis of the odometer readings mentioned in paragraph (a);
(d) the odometer readings at the beginning and end of the relevant 12-week period for each motor vehicle ( relevant motor vehicle ) provided or maintained by the person for the purpose of undertaking business journeys;
(e) the distance travelled by each relevant vehicle during the relevant 12-week period, calculated on the basis of the odometer readings mentioned in paragraph (d);
(f) the distance travelled by the person in the course of business journeys undertaken by means of each relevant vehicle during the relevant 12-week period, calculated as a percentage of the distance travelled by the vehicle during the period (the relevant percentage );
(g) the odometer readings at the beginning and end of the financial year for each motor vehicle ( relevant vehicle ) provided or maintained by the person for the purpose of undertaking business journeys;
(h) the distance travelled by each relevant vehicle during the financial year, calculated on the basis of the odometer readings mentioned in paragraph (g);
(i) the distance travelled by the person in the course of business journeys undertaken by means of each relevant vehicle during the financial year (which is taken to be the number of business kilometres travelled during the financial year ), calculated on the basis that the percentage of the distance that was travelled by the person in the course of business journeys undertaken by means of each relevant vehicle during the financial year is the same as the relevant percentage.
(2) For the next 4 financial years after the first financial year in which odometer details are recorded in accordance with subsection (1), an employer is not required to calculate the relevant percentage, or record the details mentioned in subsection (1) (a) to (f), for the person but is required to record the other details mentioned in subsection (1).
(3) Accordingly, for the next 4 financial years after the first financial year in which odometer details are recorded in accordance with subsection (1), the number of business kilometres travelled during the financial year is to be calculated (as mentioned in subsection (1) (i)) on the basis of the relevant percentage calculated for the first financial year.
(4) Despite subsection (2) and subsection (3), an employer is required to calculate the relevant percentage for a financial year, and record the details mentioned in subsection (1) (a) to (f), if—
(a) the commissioner serves a written notice on the employer before the commencement of a financial year during the 4-year period directing the employer to keep the details referred to in subsection (1) (a) to (f) for the financial year; or
(b) the employer wishes to use the recording method mentioned in this section for 1 or more additional motor vehicles used by the person in any financial year or for any other reason.
(5) In a situation mentioned in subsection (4), the new record for the financial year replaces the relevant percentage details previously recorded and subsections (2) and (3) apply in relation to the new record for the financial year as if it were the first financial year in which odometer details were recorded.
(6) An employer who has adopted and employed the method of recording mentioned in subsection (2) and subsection (3) for a person for 4 successive financial years must, in the next succeeding financial year, make a fresh recording of all the details stated in subsection (1) if the employer intends to continue to use the same method of recording for the person.
(7) Subsection (2) and subsection (3) apply in relation to the new record under subsection (6) for the financial year as if it were the first financial year in which odometer details were recorded.
(8) If the odometer of a motor vehicle is replaced or recalibrated during any period for which its readings are relevant for the purposes of this clause, the odometer readings immediately before and after the replacement or recalibration are to be recorded.
2.4 Meaning of relevant 12-week period—s 2.3
(1) For section 2.3, relevant 12-week period means a continuous period of at least 12 weeks, selected by the employer, throughout which a motor vehicle is provided or maintained by a person.
(2) If the motor vehicle is provided or maintained for less than 12 weeks, the period must be the entire period for which the motor vehicle is provided or maintained.
(3) The period may overlap the start or end of the financial year, as long as it includes part of the year.
(4) If the averaging method is used for 2 or more motor vehicles for the same financial year, the odometer readings for those motor vehicles must cover periods that are concurrent.
2.5 Replacing one motor vehicle with another motor vehicle
(1) In using the averaging method, an employer may nominate one motor vehicle as having replaced another motor vehicle with effect from a day stated in the nomination.
(2) After the nomination takes effect, the replacement motor vehicle is treated as the original motor vehicle, and the original motor vehicle is treated as a different motor vehicle.
(3) An employer need not repeat for the replacement vehicle the steps already taken for the original motor vehicle.
(4) An employer must record the nomination in writing in the financial year when the nomination takes effect.
(5) However, the commissioner may allow an employer to record the nomination at a later time.
2.6 Changing method of recording
(1) An employer may change from using the averaging method to using the continuous recording method with effect from the beginning of a financial year if the employer complies with section 2.2 for the financial year.
(2) An employer may change from using the continuous recording method to using the averaging method with effect from the beginning of a financial year if the employer complies with section 2.3 for the financial year.