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: