Preamble
Yes.
Section 118-5 of the Income Tax Assessment Act 1997 states that you disregard a capital gain or capital loss you make on a car, motor cycle or similar vehicle. A car is defined to be 'a motor vehicle designed to carry a load of less than 1 tonne and fewer than 9 passengers' (subsection 995-1(1)).
A car is a CGT asset under Division 108. A car may be a collectable in terms of subsection 108-10(2) if it is an antique. A car may be a personal use asset in terms of subsection 108-20(2) if it is used or kept mainly for your (or your associate's) personal use or enjoyment. In either case, it remains a car for the purposes of section 118-5 and any capital gain or capital loss made on it is disregarded under that section.
We invite you to comment on this Draft Taxation Determination. We are allowing 4 weeks for comments before we finalise the Determination. If you want your comments considered, please provide them to us within this period. Comments by Date: 10 September 1999 Contact officer details have been removed following publication of the final ruling.