Bottrell Business Consultants are the New South Wales agribusiness experts
We understand the associated issues with farming and can help,
- Annual financials and taxation reports
- Monthly management reports
- Risk minimising business structuring
- Doc’s for farm finance and loans for new equipment, property, business expansion etc
- Budgeting
- Cash flow management
- Primary production tax advice
Our staff have extensive experience in the agriculture industry.
Flash Car Tax
There are many things that while undertaking business you should consider one of these is in regards to purchasing of new company vehicles. When purchasing a new vehicle you should be aware that there is a luxury car tax limit that will apply. A client of ours recently purchased a new Land Cruiser for $72,500.00(inc GST).
There is a capped limit that can be claimed under the luxury car cost, currently limit is $57,466.00 this limit has only increased three times since 2002.
The luxury car cost limit applies to private passenger motor vehicles for clamming input tax credits and depreciation. The depreciation cost limit of $57,466.00 is GST exclusive this means the total cost of the vehicle including GST can be $63,212.60. The GST payable of $5,224.00 can be claimed as a input tax credit.
To make things interesting there is a luxury car tax included in the purchase price in vehicles over the threshold the luxury car tax threshold is $59,133.00 and is levied at 33% of the value that exceeds the limit.
This will mean for the four wheel drive purchases, If you qualify as a SBE (Small Business Entity) you will be able to claim the $5,000.00 as a one off deduction. In addition you can claim the deduction for the depreciation is limited to $7,870.00. In addition you will be able to claim an input tax credit of $5,244.00. The luxury car tax levy on this purchase will be on the $3,776.09 that the vehicle is over the levy, total luxury car tax of $1,246.11
Credit-
The Sydney Morning Herald (2013) Flash car tax facts. [online]
Available at: http://www.smh.com.au/small-
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