The government is encouraging the uptake of electric vehicles with this new strategy. If you buy an electric vehicle before the end of this financial year (30 June 2023), you can claim it as a tax deduction in your business.
Previously, if your logbook had 50% business use, and 50% private use, you could only claim 50% of the car in your business.
But what’s happening with the electric vehicles, regardless of what that percentage use is, even if it’s 50% personal use and 50% is business use, you can claim 100% of it still. Since it is FBT exempt there are no tax consequences.
It’s beneficial for professional people who don’t travel much and usually have less of that logbook percentage and are able to claim really less of their cars anyway.
NOTE: This would have some impact on your reportable Fringe Benefits on your tax return which can change HECS payments and some other government benefits.
Watch the full webinar, Tax Planning in 2023 and learn the tax saving strategies business owners need to know before 30 June at https://youtu.be/dqE_6X7utjM
If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions.
From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax.
Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us.
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