Income tax: is a hearse a motor car or a station wagon for the purposes of section 57AF of the Income Tax Assessment Act 1936 and therefore subject to the limit on cost price for depreciation?

Taxation Determination TD 95/25, which issued on 22 June 1995, deals with the cost of a hearse for depreciation purposes and the application of the motor vehicle depreciation limit.

From 1 July 2001, the concept of depreciation for plant has been replaced with the concept of decline in value for depreciating assets (which includes plant), as set out in Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997).

As Taxation Determination TD 95/25 is no longer current, it is accordingly withdrawn.

The Determination is replaced by Draft Taxation Determination TD 2006/D10, which issues today. TD 2006/D10 considers whether a hearse is 'a car designed mainly for carrying passengers' for the purposes of section 40-230 of the ITAA 1997 and therefore subject to the car limit.