can you claim depreciation on your car

Ah, the age-old question of turning your car into a tax shield. In Australia, if you use your car for business purposes, you can indeed claim depreciation as a tax deduction. The Australian Taxation Office (ATO) generally allows you to depreciate the cost of your vehicle over several years using either the diminishing value method or the prime cost method. But before you get too excited, this only applies to business use—personal use is off the table.

Key points:

• Depreciation claimed is based on the business-use percentage of the car.
• You must keep accurate records like logbooks for substantiation.
• Luxury car depreciation limits apply, capping the depreciable value.

Check the ATO’s official guides or consult your accountant before turning your car into a little tax-writing machine.