Get ready to supercharge your business in the Inner West of Sydney with a brand-new company car! We’re about to unveil some incredible tax tips that could turbocharge your savings, specifically in the realm of Luxury Car Tax (LCT). Many savvy business owners are catching on to the tax advantages of snagging a vehicle under the company umbrella. So, buckle up because we’re breaking down the key tax benefits and recent legal tweaks, including the luxury car tax threshold, that could put you in the driver’s seat of a seriously savvy tax strategy.
The GST and Depreciation Advantage:
Let’s kick off with one of the coolest perks of buying a company car in Australia – claiming the Goods and Services Tax (GST) of the car purchase. You can snag up to 1/11 of the car’s value – pretty sweet, right? But wait, there’s more! Hold onto your hat as you can also claim the car as a depreciation expense based on its estimated effective life. Picture this: a tax break for the wear and tear on your sleek new wheels. That’s a pit stop worth making!
Plot Twist: Fringe Benefit Tax (FBT)
Every good story needs a twist, and here it is – the Fringe Benefit Tax (FBT). When you snag a company car, it’s FBT time. But fret not! Recent changes in tax laws have thrown in a plot twist. If you’re rolling in a full electric car, bought under the company name, you can dodge the FBT bullet. Yes, you read that right – electric cars are the heroes of this tax-saving saga!
Keep It Classy with Luxury Car Tax Limits:
Now, for those eyeing the crème de la crème of vehicles, pay attention to the Luxury Car Tax (LCT) limits. If your dream car crosses the $70,000 mark, it’s on the LCT radar. For the financial year 2024, the limits have been cranked up to $76,950 for non-fuel-efficient cars and $89,332 for the fuel-efficient gems. Remember, this tax applies only to the extravagant, so choose wisely.
Reality Check: Depreciation Limits
As we roll through the financial year 2024, keep in mind the depreciation limits for your vehicle. The car limit for depreciation has been set at $68,108. So, if your business is eyeing a high-end purchase, make sure you stay within this boundary to make the most of your tax deductions.
The recent increase in the Luxury Car Tax threshold calls for some proactive moves from businesses in the Inner West of Sydney. Bringing in the expertise of professional CPAs, like the awesome team at EndureGo Tax, is a smart move. It ensures compliance, maximizes fiscal benefits, and smoothly navigates the nuanced terrain of luxury car taxation, including the Luxury Car Tax threshold. Talk to us, before you hit the gas, to ensure you navigate the twists and turns of the tax landscape. Whether it’s claiming GST, maximizing depreciation, or making the most of the recent FBT exemptions for electric cars – we’ve got the keys to your tax benefits. Don’t let tax obligations put the brakes on your dreams.