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Maintenance income: motor vehicle expenses 277-51100020



This page contains examples of how to assess the value of the use of a motor vehicle where it is necessary to manually assess and record private maintenance income for a Family Tax Benefit (FTB) customer.

Examples

Examples of manually assessing and recording private maintenance

This table describes examples of manually assessing the value of the use of a motor vehicle and record private maintenance income for Family Tax Benefit (FTB) customers.

Item

Example

1

Sole use of car + Read more ...

Customer has sole use of a car that is jointly owned with a previous partner. The customer pays all the running expenses and registration and insurance. The partner has continued to pay loan repayments for the car of $100 per month. The partner has bought another vehicle for their use.

Assessable maintenance = $50 per month.

This is treated the same as other loan repayments. Because the car is jointly owned, only half the loan repayments can be counted. The other half is contributing toward the partner’s interest in the car.

2

Shared use of car + Read more ...

Debbie shares the use of a car with Bill, the other parent of Jane, Rob and Carmen. The car is owned outright by the other parent who pays for registration, insurance, ongoing maintenance costs and all petrol.

Debbie states that the use is shared 50/50, and that Bill paid $450 on registration, $130 on insurance, $10 per week to cover ongoing maintenance, and $40 per week for petrol.

Assessable maintenance = half the total amount spent on ongoing maintenance and petrol ($25 per week)

The cost of insurance cannot be counted as it does not directly benefit Debbie. It insures Bill's asset.

The cost of registering the car cannot be counted as Bill has not paid any more to allow Debbie to use the car. He would have registered the car anyway so that he could use it.

3

Car jointly owned + Read more ...

Sandra and Tony jointly own a car for which they have a joint loan. Since they separated, Tony has paid the full loan repayments. Tony has had sole use of the car. Sandra advises Services Australia that child support is received from Tony due to the loan repayments.

Assessable maintenance = nil.

Sandra does not benefit from the amount paid as the car is not available for her to use. Although her share of the asset is being maintained, this is of no direct benefit to Sandra while Tony is wearing the car out.