So, how does the new budget affect the purchase of old and new cars? Is it also intriguing you?
The government has made several changes in School holidays present depreciation rules. Under this rule, small businesses under 2 million dollars can claim a prompt expense conclusion on things bought that are esteemed up to $20,000 Inc GST.
From when it will get into effect?
It has already begun on Budget Night 2015 (Tuesday, twelfth May) and will keep running up until 30 June 2017.
How is it going to help with purchase of a car?
You need to have a small business with turnover less than $2 million.
If you fulfill this criteria, then you can definitely start looking for a car under $20,000 to be eligible for speedy depreciation.
Is there anything specific for car purchase?
You can purchase any type of car. It can be either new or used. Suppose you need training then check Driving school in parramatta. It should be used for commercial purpose.
Be prepared to get offers from car sellers for the models up to $20,000 to attract buyers.
Any offers for cars above $20,000?
In case of selection of a car above $20,000 you can still get a deduction, but no accelerated depreciation.
This purchase will be considered under existing depreciation rules and the relevant taxes will be applicable.
Finance for small business and purchase of a car
So now that everything is clear and you have prepared your mind to purchase a car under $20,000. All you need is finance for same. Even if you purchase the car under a finance or not, you will be eligible for the tax break. Now, all you need is Defensive driver training for driving vehicles, seek out a loan and start enjoying a drive in a new car.
Just be cautious to ensure that the finance scheme ensures you to enjoy accelerated depreciation and does not make you stand out of exemptions.
First learn the details of finance and then start selection of the car so that you don’t have to be disturbed to leave your choice if finance is not falling under the $20,000 limit.
The main points to remember
· You should be the owner of a small business with annual turnover under $2 million.
· Select a vehicle under $20,000 INC GST to enjoy a maximum tax deduction.
· Inquire about finance before selecting the car.
This article is an informative about the new federal budget and the clause through which you can purchase a new car or an old car under the budget of $20,000.
But it is always advisable to consult your financial advisor and tax advisor before taking any steps. Our article is no assurance of tax deducted or purchase.