(1) To calculate your deduction using the "cents per kilometre" method, use this formula:
(2) But you can use this formula for the first 5,000 * business kilometres only. If the * car travelled more than 5,000 business kilometres, you must discard the kilometres in excess of 5,000.
Example: If the car travelled 5,085 business kilometres, you could claim for 5,000, and would lose the extra 85.
(3) Business kilometres are kilometres the * car travelled in the course of:
(a) producing your assessable income; or
(b) your * travel between workplaces.
You calculate the number of business kilometres by making a reasonable estimate.
(4) For the purposes of subsection (1), the Commissioner may, by legislative instrument, determine rates of cents per kilometre for cars for an income year.
(5) In determining a rate, the Commissioner must have regard to the average operating costs for the cars to be covered by that rate.
Note: Examples of operating costs include fixed costs such as registration, insurance and depreciation, and variable costs such as fuel and maintenance.