business vehicle write off Page 80

In Australia, a “business vehicle write‑off” usually means you can either claim an immediate deduction (when eligible) or depreciate the car over time—always limited to the business‑use percentage. Passenger cars are capped by the ATO’s car cost limit, which also caps any GST credit; utes and larger commercial vehicles may be treated differently. Private use must be carved out, and if an employee (or you as a director) gets private use, Fringe Benefits Tax can crash the party.

Keep a compliant 12‑week logbook (and refresh it when needed), retain tax invoices, and make sure the vehicle is genuinely used to produce assessable income. Rules and thresholds change with Budgets, so check the current instant asset write‑off settings before you buy, and line up advice from your accountant for timing and structure. In short: buy for the business need, document the usage, and let the tax benefit follow—not the other way round.