ATO-approved vehicles lower tax for small businesses

Dual-cab Utes, single-cab Utes, four-wheel drive vehicles with load capacity of one tonne or more, and taxis have big tax advantages.

Primarily, the Australian Taxation Office (ATO) takes the view that these are foremost, commercial vehicles and attract concessional treatment.

Advantages include:

1. Fringe benefit tax exemption, provided they are used only by the employee for business and driven from work to home only.
2. No requirement for a log book, as all expenses are allowed to be 100% deductible, provided you have substitution of such.

This has the potential to save small businesses and employees large amounts of cash.

This is particularly important, as a lot of employers are passing on fridge benefits tax to their employees.

Call into your local TaxAssist Accountants’ office to see an accountant for more specific details.

Last updated: 20th September 2016