Comments on: Small business tax break increased & extended

By: vu

vu — Fri, 09 Oct 2009 06:33:31 +0000

i have been told that for a demo to be eligible for the bonus tax break, it has to be less than 3000km and only been registered for 3 mth or less for the demo purpose.

can anyone confirm this??

cheers

By: Brian M

Brian M — Mon, 15 Jun 2009 05:32:35 +0000

Hi all,
I think the demonstrator discussion is following two different points…the example that most of us are interested in is whether or not we as normal people can buy a demo from the dealership and consider it to be new for the purposes of the tax break, the answer is yes, you can…the second example is if an actual car dealer can continually register new cars as demos within the dealership and claim 50% tax breaks for their dealership on each of them, then the answer is NO, they cannot…So unless you’re a new car dealer, then demos are considered the same as new cars for the purposes of this tax break.

Hope this helps.

By: Andrew M

Andrew M — Fri, 15 May 2009 06:38:18 +0000

Adam,
from memory of what i read its 30% for larger businesses.
The 10% kicks in if they dont get in before june 30 this year.
small businesses still have till dec 31

Brasco,
do you normally claim for decline in value on your vehicle???
That is the real determining factor.
those that claim other methods such as cents per kilometre etc arent eligible

By: Brasco

Brasco — Fri, 15 May 2009 04:24:14 +0000

What if I an employed as a Real Estate Salesperson (Wages + Commission)and receive a car allowance as part of my package. Can I then purchase a New Vehicle (registered as business) and Claim 50% of the purchase back on my total income?

By: freddy

freddy — Fri, 15 May 2009 02:45:30 +0000

Passed the senate without amendment on the 14th May. Just awaits royal assent. Woohoo.

By: Adam

Adam — Thu, 14 May 2009 11:52:10 +0000

Turnover max is $2mil for 50% (i.e. small businesses)

Larger businesses 10%

I’m sure they are quite aware this will be used for vehicle purchases that will suddenly become private vehicles. I’d say much of what is behind this is also an attempt to stimulate the economy through getting vehicle sales out of the doldrums.

By: Adam

Adam — Thu, 14 May 2009 11:50:23 +0000

It is as I explained. 50% upfront deduction as long as at the time of acquisition it is predominantly expected to be used for business purposes. If that use changes in 6 months, that doesn’t affect it. You do not have to apportion it business use vs private use like you do for expenses.

BY the way, this bill passed the House of Reps today.

By: Bret

Bret — Thu, 14 May 2009 08:28:13 +0000

Question 44 — Are ‘demonstrator’ vehicles eligible?
108. Demonstrator vehicles can qualify as ‘new’ assets provided they have only been used for reasonable testing and trialling.

Source:
http://www.treasury.gov.au/documents/1505/PDF/Frequently_Asked_Questions_20090513.pdf

By: Andrew M

Andrew M — Thu, 14 May 2009 08:08:18 +0000

Tyson,
whats the turnover threshold between the 30% and 50% bonus???

Does it favour smaller or larger turnover.

Just in thinking about it, because i bought mine about 2 months early, Id probably be better to go and trade it in already ha ha ha ha ha

By: Andrew M

Andrew M — Thu, 14 May 2009 08:06:04 +0000

Im gonna weigh into the Demonstrator debate…..

Perhaps once it is registered to the dealership, it no longer qualifies.

What i mean is usual testing and trialing is conducted under the use of trade plates, and at that time there is no specific registration applied to the vehicle.

Perhaps once it is individually registered they will consider it to be no longer used for testing and trialing…..
Ive never test driven a new car that was registered.
Just a thought