FAQ: What is the ATO's 'Accelerated Initial Deduction for Motor Vehicles scheme, and how does it work?
What is the ATO's 'Accelerated Initial Deduction for Motor Vehicles' scheme, and how does it work?
Starting in FY13, the ATO offers small businesses the ability to claim an upfront tax deduction of $5,000 for any motor vehicle purchased in excess of $6,500 for a taxable purchase.
In addition to this deduction, regular depreciation over time will apply. This is calculated by taking the remainder of the motor vehicle value and depreciating at 15% in the first year and then 30% onwards as per the general small business pool.
For more information please visit the ATO website.