Buying a car for your business? The government might be able to help you out at tax time.
In addition in a reduction of the company tax rate, the threshold for immediately deductible items has been raised from $1,000 to $20,000; meaning that any equipment purchased for your business (including cars) will be written off on your tax until June 30, 2018.
Effective until June 30, 2018, assets up to $20,000 ex GST (excluding stock, horticultural plants and software developed in-house) are eligible for a 100% tax write-off for any business with a turnover less than $2 million.
If you do need a business vehicle, Motorama has dedicated, expert teams across our dealerships; who can help you with solutions to get you on the road with expertise in service, sales, finance and insurance. We also have a fantastic range of new, used and demonstrator cars under $20,000 across our group of dealerships.
View all cars under the threshold
If you’re considering purchasing a business vehicle under these new accelerated depreciation method; the below table from BDO gives a handy example of net costs and savings – for the full brochure assessing the changes to claiming deductions on asset, click here.
(BDO Comment: If you have any queries in regards to the depreciation of motor vehicles for small businesses, please contact BDO who will have one of their Automotive specialists assist you. Please note this information is general in nature and should not be used as a substitute for your own professional advice. Any tax benefit that may be available will be subject to your own circumstances.)
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