Small businesses to benefit from changes to work-related car deductions
A simplified approach to motor vehicle claims will assist small businesses claim for the cost of motor vehicle use for work purposes.
Independent Member for Indi, Cathy McGowan AO, said the changes to simplify the system to two methods of calculation would be welcomed by small business owners.
Ms McGowan said the changes, introduced by the Government and passed in the House of Representatives yesterday, would remove two deduction methods, the 12 per cent of original value, and one-third of actual expenses.
“This will help those self-employed business people looking for a simpler way to accurately claim expanses for their vehicle in a work-related capacity,” Ms McGowan said.
Taxpayers will still be able use the log book or cents per kilometre method. The cents per kilometre method includes the number of kilometres up to 5000. An average cost calculated on the top five selling cars will be introduced of 66 cents per kilometre. This replaces three rates of 65, 76 and 77 cents for small, medium and large vehicles.
The Tax and Superannuation Laws Amendment (2015 measures No. 5) Bill 2015 passed the House of Representatives today.