Purchase a new Nissan before June 30th 2021 to take advantage of the Tax Write Off available for eligible businesses*

General Information – Temporary Full Expensing Initiative

What is it?

Following the instant asset write-off initiative for small businesses, the Australian Government launched a new tax initiative in October 2020 called ‘Temporary Full Expensing’.

This temporary initiative allows eligible businesses with an aggregate turnover of less than $5 billion to immediately write-off the business portion of the cost of eligible depreciating assets, such as work vehicles, in a single financial year.

 

How Much Can I Write Off?

Individual circumstances will affect how much you can write off, common factors are:

  • How much you use the car for business or private use. Only the business portion of the cost can be deducted.
  • How much tax you owe at the end of the financial year.
  • The depreciation method used.

 

 

What’s The “car Cost Limit”?

Depending on the type of vehicle you purchase, the car cost limit may also apply. There is a limit on the cost you can use to work out the depreciation of passenger vehicles (except motorcycles or similar vehicles) designed to carry a load less than one tonne and fewer than nine passengers. The car limit does not apply to the New Nissan Navara as it has a payload over one-tonne.

 

If you’re not in the market to buy a Nissan Navara, but are looking to buy a work vehicle for your business, you may still be eligible to claim a tax deduction across a range of popular Nissan models.

To find out more on the temporary full expensing initiative and how you can claim the tax write-off, speak to your accountant or qualified tax professional. For detailed information, please visit the ATO website.