I will start this article with this disclaimer: “this information is general in nature and should not be used as a substitute for your own professional advice. Any tax benefit that may be available will be subject to your own circumstances. Please contact your own tax professional or accountant.”
Can I write-off a new car under $150k instant tax write-off?
Yes, but there are limits. In simple terms, if you buy a new or used motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers (that is, regular passenger cars, SUVs) subject to business use, you may be able to claim an immediate deduction where the cost is less than $57,581 excluding GST.
The instant asset write-off is also limited to the business portion of the car limit of $57,581. So if you use the vehicle for 75% business use, the maximum you can claim under the instant asset write-off is 75% of $57,581, which equals $43,186.
How can I claim the full $150k instant tax write-off?
The ATO says that “commercial vehicles designed not principally to carry passengers (such as tucks, vans and utility vehicles), businesses may be able to claim an immediate deduction where the cost is up to $150,000 excluding GST.” So the answer is to get the full value of the instant tax write-off buy a commercial vehicle like a van, truck or ute and if you need a multipurpose vehicle buy a dual cab ute such as a Toyota Hilux, Ford Ranger or Mitsubishi Triton. But if you use it on weekends, keep in mind you will need to declare ‘personal use’ portion.