All go for car tax breaks

FEDERAL legislation providing business tax breaks of up to 50 per cent on new vehicles are now law, having passed unopposed through parliament today – little more than a day after being confirmed in the budget.

The bonus tax deductions are a major filup for the car industry, helping to bolster sales as Australia slides into recession.

The legislation provides for small businesses to claim an additional tax deduction of 50 per cent on the cost of a new vehicle acquired before December 31.

For other businesses, the claimable bonus deduction will be 30 per cent on business vehicles, but only until June 30. After that, a 10 per cent bonus tax break on top of usual deductions will apply until December 31.

The boost for the car industry was contained in a broader investment tax break package for business.

The speedy and unhindered passage of the bill was welcomed by the Federal Chamber of Automotive Industries.

“This measure offers a significant saving on the cost of a new vehicle and business owners are encouraged to act quickly to take full advantage of it,” FCAI chief executive Andrew McKellar said.

“The industry now has the opportunity to promote this valuable incentive with confidence,” he said.

“This tax break provides a boost for business and we are hopeful that this incentive will help to encourage additional new vehicle sales in coming months.”

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