A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.
Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.
Example 1
The motor vehicle allowance paid to a real estate salesperson during the 2017–18 year is $300 per week. No records have been maintained by the employer to substantiate the business kilometres travelled.
The exempt rate under the ITAA for 2016–17 for calculating a deduction for car expenses using the cents per kilometre method is $0.66 per kilometre. Therefore, the exempt component is $165 per week (250 kilometres x $0.66). The taxable portion of the allowance is $135 per week ($300 – $165).
Example 2
The motor vehicle allowance paid to a real estate salesperson during the 2017–18 year is $150 per week. No records have been maintained by the employer to substantiate the business kilometres travelled.
The entire amount of $150 per week is exempt because it is less than the exempt component of $165 per week (250 kilometres × $0.66).
Example 3
The motor vehicle allowance paid to a real estate salesperson during the 2017–18 year is $300 per week. The employer has maintained records to substantiate the business kilometres travelled.
The exempt component must be calculated in accordance with the continuous recording method or the averaging method.
Elizabeth Goli
Commissioner of State Revenue
Date of issue: 15 April 2019
Public Ruling | Issued | Dates of effect | |
---|---|---|---|
From | To | ||
PTA025.3 | 15 April 2019 | 1 July 2016 | Current |
PTA025.2 | 3 July 2009 | 3 July 2009 | 30 June 2016 |
PTA025.1 | 24 February 2009 | 1 July 2008 | 2 July 2009 |