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What the proposed investment allowance means for you?
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You may be aware that the Federal Government is proposing an Investment Allowance for business. If passed into law, it may mean a once only bonus tax deduction of 30% of the capital cost of eligible new assets (ex GST), such as new vehicles, so long as they meet certain criteria.
What are the criteria for motor vehicles?
- The vehicle must be used in carrying on the business
- It must be acquired between December 13, 2008 and June 30, 2009
- It must be operational by June 30, 2010
Are you eligible?
- To be eligible your business must be entitled to tax depreciation deductions in relation to motor vehicles
- The vehicle must be used in Australia for the principal purpose of carrying on business
- You must purchase a new vehicle or, in some limited specific cases, a demonstrator vehicle may also be eligible
Further tax deductions
You should also be aware that where a business purchases an eligible asset between July 1, 2009 and December 31, 2009, the business may be eligible for a bonus tax deduction equal to 10% of the value of the asset is operational by December 31, 2010.
Why you should act now
Naturally, since the proposed Investment Allowance may only be available on assets purchased before June 30, you'll need to move fairly quickly. Better still, because Toyota's annual end of financial year TOYOTA MEANS BUSINESS event runs through to the same date with super-sharp drive away pricing, there's probably never been a better time to buy a new Toyota.
| Vehicle |
Model |
RRP*
incl. GST |
RRP*
excl. GST |
Potential 30% tax deduction |
| Yaris |
1.3L YR 3dr Hatch M/T |
15,690.00 |
14,263.64 |
$4,279.00 |
| Corolla |
Ascent Hatch M/T |
21,490.00 |
19,536.37 |
$5,860.91 |
| Camry |
Altise M/T |
28,490.00 |
25,900.00 |
$7,770.00 |
| Aurion |
AT-X |
34,990.00 |
31,809.09 |
$9,542.73 |
| Prius |
I-TECH |
46,900.00 |
42,636.36 |
$12,790.91 |
| RAV4 |
CV |
32,490.00 |
29,536.36 |
$8,860.91 |
| Kluger |
KX-R 5 seat 4x4 3.5L |
45,990.00 |
41,809.09 |
$12,542.73 |
| Prado |
4.0L Petrol GX M/T |
47,670.00 |
43,336.36 |
$13,000.91 |
| Hilux 4x2 PETROL 2.7L VVT-i |
Petrol Single Cab Chassis WorkMate M/T |
18,240.00 |
16,581.82 |
$4,974.55 |
| Hilux 4x4 TURBO DIESEL 3.0L |
3.0L T/D S/C, Cab Chassis SR M/T |
36,490.00 |
33,172.73 |
$9,951.82 |
| Hiace |
Hiace T/D LWB M/T |
36,490.00 |
33,172.73 |
$9,951.82 |
| LC70 Turbo Diesel Single Cab Chassis (4.5L) |
Workmate M/T |
55,590.00 |
50,536.36 |
$15,160.91 |
| Coaster |
STD M/T |
94,500.00 |
85,909 |
$25,772.73 |
NB: The above figures are indicative estimates for example purposes only and are based on existing Tax Laws Amendment (Small Business and General Business Tax Break) Bill 2009 and may be subject to change depending on the actual laws passed.
* Recommended Retail Price (RRP) unless otherwise stated, excludes dealer delivery and statutory charges.
Luxury car tax
Luxury car tax will apply notwithstanding the investment allowance. In practice, a taxpayer who is eligible to claim the proposed 30% investment allowance for a luxury car, can only claim the proposed investment allowance up to the luxury car tax threshold (for 2008/9 $57,180) - ie the allowance cannot be claimed on the part of the price that is over $57,180.
Speak to your accountant
Before seeing Pennant Hills Toyota you should obtain your own independent tax advice to ensure eligibility and correct application of the legislation if and when passed.
 
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