instant asset write off for cars Page 8819

Yes, the instant asset write-off can apply to cars used for business, provided you’re an eligible business and the vehicle is first used or installed ready for use in the relevant income year.

You can generally deduct the business‑use portion of the cost immediately, but “cars” are capped by the ATO car depreciation limit, so any amount above that isn’t deductible upfront.

Vehicles that aren’t “cars” for tax (for example, utes and vans designed to carry more than 1 tonne or 9+ passengers) aren’t subject to that cap, though normal apportionment, GST and possible FBT still apply.

Second‑hand purchases can qualify, financed buys are fine if you hold the asset, and private use must be carved out with a logbook or reasonable method.

Thresholds, turnover tests and deadline dates change with each Budget season, so check the current ATO rules or talk to your accountant before you sign on the dotted line.

Short version: it’s doable, but only if you tick the eligibility boxes and the numbers fit this year’s rules.