30k Instant Tax Writeoff for Businesses - Car - WA

Hi,

With regards to the 30K instant write off of cars, I understand that the car must be priced at 30K or less.
I know this 30k is exclusive of GST if the business is registered for GST.
However, does the 30k have to be inclusive of Stamp duty?

For a 30k car + stamp duty in WA on 30K (1k) = 31K.
So will I not be able to claim the instant write off?

*assume the car is being use 100% for business purposes.

Comments

  • +2 votes

    The cost of the car needs to be less than the threshold of $30K. It is not less than or equal to.

    Stamp duty is included in the cost of the car for depreciation purposes. Therefore, it forms part of the threshold. The price of the car plus stamp duty needs to be $29,999.99 or lower (excluding GST if registered) to claim the immediate deduction.

  • +2 votes

    GST exclusive price, don't include the GST
    Stamp duty forms part of the cost therefore you have to include stamp duty
    Cost of GST exclusive and stamp duty must be under 30k

  •  

    Thanks for the clarification guys!

  •  

    Does this tax feature apply equally to second hand vehicles bought for business use?

    And can I claim this for my business tax purpose, on a vehicle that I already own in my name, but allocate to 100% for business use from say July 1st 2019?

    • +1 vote

      Yes, it applies equally to new and second-hand assets.

      The vehicle must be 'acquired' in order to claim the instant asset write-off. It is unlikely that changing the business use percentage of a vehicle you already own would count as 'acquiring' the asset.

  •  

    Same situation here - NSW

    If buying under the instant asset write off (sole trader), is interest from loan payments tax deductible? Trying to work out best way to finance it.

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    One more question - how instant is the tax write off? Is it when I lodge my tax return 2019-2020 or is it literally instant, ie will reduce my current tax obligations within coming months? Just had huge PAYG jump so playing catch up and it would be great if this could soften the blow now rather than in a year or so..

    • -1 vote

      Why do you have PAYG. Shouldn't you be invoicing as a business does?

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      You receive the deduction when you lodge your tax return.

      However, if you believe your taxable income this year will be significantly lower due to the asset write-offs, you could vary your current quarterly PAYG instalment down to reflect this.

      However, you can be penalise if you vary too low.

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