New ATO upfront deductions for motor Vehicles and Plant & Equipment

With the intention of driving more business investment during these difficult times, the Federal Government has announced new deductions for most plant and equipment, motor vehicle and other business assets either ordered or acquired from 1 July 2012 for eligible small businesses with a turnover of less than $2 million.

The new measures mean small businesses can instantly write off most assets (including Motor Vehicles) purchased after 1 July 2012 and costing less than $6,500 as a once off tax deduction.

Also available is an immediate one off deduction of $5,000 for new or used motor vehicles purchased from 1 July 2012 and costing more than $6,500 with the balance of the cost depreciated as per the normal depreciation rules.

Make sure you talk to us about this fantastic opportunity to generate a big tax break for your business for the 2013 tax year and beyond.

7 thoughts on “New ATO upfront deductions for motor Vehicles and Plant & Equipment

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  2. hi, looking to purchase (no finance) plant equipment to the value of $15,000. As this is over $6,500, do I get an immediate deduction of $6,500 PLUS a percentage? How would it work?

    1. Hi Adam,

      Sorry – the instant write off is an all or nothing type of deduction. In your case the purchase would be subject to the normal depreciation provisions as the cost of the asset is greater than $6,500. So you will still get a deduction for the asset purchase but just over a longer period rather than the instant write off.

      I hope that helps and good luck with the purchase.


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