Small business and general business tax break

Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

What about buying a car?

If you are self-employed or you carry on business in a partnership including at least one individual taxpayer, you can claim the tax break for vehicles if you use the log book, one-third of actual expenses or 12% of original value method to calculate your vehicle's expenses. You must also meet all other eligibility requirements for the tax break.

You can't get the tax break for vehicles where you use the cents per kilometre method.

If you carry on business other than as an individual or in a partnership including at least one individual taxpayer (for example, through a company or trust), these rules do not apply to you. You will be able to claim the tax break for a car if you meet all the eligibility criteria.

For more information, see What is an eligible asset? under the heading 'Cars'.

You may also be interested in What is new investment? under the heading 'Demonstrator vehicles'.

Sections within Buying assets

Last Modified: Wednesday, 9 December 2009