DE 12Kilometre rate method

1. This section applies for the purposes of calculating a deduction for the business use of a motor vehicle under section DE 2(1) if a person made an election under section DE 2B to apply this section.

2. The amount of the deduction allowed for the business use of the vehicle in an income year is the sum of the amounts calculated under the following formula for each applicable kilometre rate for the vehicle for the income year:

   $kilometre\; rate\; \times \; kilometres\; travelled\; \times \; business\; proportion.$

   Where:

3. In the formula,—

4. kilometre rate is the applicable kilometre rate that is published by the Commissioner:
5. kilometres travelled is the total number of kilometres the vehicle has travelled, for both business purposes and other purposes, to which the applicable kilometre rate applies:
6. business proportion is the proportion of business use of the vehicle for the income year, calculated using a method described in sections DE 5 to DE 11, and expressed as a decimal.

7. For the purposes of this section, the Commissioner must from time to time set kilometre rates.

8. An instrument that sets kilometre rates under subsection (4) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Notes

• Section DE 12: replaced, on 1 April 2017 (applying for the 2017–18 and later income years), by section 77(1) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
• Section DE 12(4): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
• Section DE 12(5) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
• Section DE 12(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).