Lisa Shepherd February 14, 2017 No Comments

Now is a great time to purchase a company car if you’re a small business. The government brought in some great tax benefits for small businesses a few years ago and they’re about to run out.

If you purchase a car (or any asset for that matter) that costs under $20,000, you can reduce your taxable income by that amount immediately, instead of depreciating it over time.

Previously, you were only able to depreciate 15% of the cost of a new asset in the first year (and 30% in subsequent years). This means if you purchased a car for $20,000 you could only deduct $3,000 off your taxable income in the first year. At the moment you can deduct the full $20,000.

But not for long! These incentives are set to run out in June 2017.

Of course if you do decide to purchase a new company car, we can help you finance it with low rates and great loan features.

You can read more about this on the ATO website:

https://www.business.gov.au/info/run/finance-and-accounting/accounting/depreciating-assets-for-small-business

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