Accelerated Depreciation Of Motor Vehicles

Accelerated depreciation

Businesses will be able to claim an immediate deduction for assets, including new and used motor vehicles, where the cost is less than $150,000 ($165,000 including GST), subject to business use.

This increased threshold of $150,000 applies from 8 am, 12 March 2020 as announced by the Australian Government Treasury. 

Vehicles with a cost greater than $150,000 will not be immediately deductable, however, potentially when the written down value falls below $150,000 they can be immediately deductible (providing this occurs no later than the income tax year ended 30 June 2020).

Eligible Businesses

Businesses with an aggregated annual turnover of less than $500 million (up from $50 million) are now eligible to access accelerated depreciation for motor vehicles. You should check your eligibility with your accountant as this threshold has transitioned from $50 million to $500 million recently.

What is the tax benefit?

Businesses will be able to accelerate a deduction for depreciation for assets, including vehicles purchased up to $150,000 (subject to business use).

Please note 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.