4 September 2015
Small businesses can claim a deduction for individual assets that cost less than $20,000.
The changes mean you can claim a deduction for:
The tax concession is only available if you use the car in running your business. Note that if you purchase a car in the business name and the car is used by any employees, you may have to pay fringe benefits tax (FBT).
What information do I need to keep?
Keeping a log book is the best way to prove that you are using the car to run your business, and can reduce the amount of FBT payable. You should detail all business travel for a period of at least 12 consecutive weeks showing:
For FBT purposes you may also need to keep odometer readings at the start and end of each year, along with details of the operating costs for the car.
Things to keep in mind
Find out about:
Related news items
Threshold amounts applying to cars from 1 July 2016.
Eligible small businesses can immediately deduct assets costing less than $20,000 purchased after 7.30pm 12 May 2015.
Register your interest in goods you are buying, selling, hiring or renting out.