Posted 20th May, 2015 in Car News
How to Qualify
If you own a registered business with an ABN that has turned over less than $2million(AUD) then your business qualifies.
Up to $20,000 PER item, with no limit on how many items you buy providing the items you purchase relate to your business.
Items You Can Claim
You could claim any item that is used for running your business like:
- Vehicles (Cars, Vans, Motorbikes, Trucks, Utes)
- Equipment (lawnmowers, machinery, welding equipment, generates, pumps)
- Office items (fridges, coffee machines, printers, air-conditioners, ovens)
- Computer equipment
- Sound & security equipment
Items You Can’t Claim
You cannot claim an item if it isn’t apart of your businesses running costs.
- Computer Software
Small businesses have 2 years to take advantage of the new $20,000 tax break, so it ends on the 30th June, 2017. For more information about the $20,000 tax break, we recommend you seek professional advice from a tax professional
Tax Benefits to Finance a Vehicle
If you own a business and need to purchase a vehicle, but can’t dip into your cash flow, then vehicle finance may be best for you. By financing your vehicle you can make simple repayments and still get the tax benefits for driving vehicle for business purposes.
Over time the vehicle you purchase will depreciate in value, like any other vehicle. So the benefit of having a business car means that you can claim some of the loss.
The mileage rate changes every year but you could claim 50c for every mile that your car is driven for businesses purposes.
If your business is leasing your vehicle, then this payment can be a deduction from your businesses the taxable income.Sometimes this can also include operating costs.
That’s right! If your vehicle is used for business purposes, then you could claim the cost of petrol, servicing/repairs, insurance and even the interest that has accumulated on your vehicle loan.
We recommend for you to speak to your Accountant for specific details regarding tax benefits for your business and to see if you are eligible for the above. If you would like to know more about financing a vehicle for your business call us on 1300 883 983