Now is the time for companies to buy new cars in order to benefit from the Federal Government tax breaks.
Until 31 December, small businesses (annual turnover of less than $2 million) can claim a 50 per cent bonus tax deduction for eligible assets costing more than $1,000 while all other businesses enjoy a similar tax break of 10 per cent.
Mr David Purchase, Executive Director of the Victorian Automobile Chamber of Commerce (the peak automotive body in Victoria) said: 'The Small Business tax break is one of the Government's better incentive schemes and we urge business owners to take advantage of it. It is of particular benefit to employers and managers looking to purchase a new vehicle or fleet.'
According to the VACC, companies can select a new vehicle and commit to purchase before 31 December without having to take delivery until the end of 2010.
'But time is running out. On 31 December, this incentive scheme will end and Government has made it clear that it will not be extended,' Mr Purchase added.
The enhanced safety of new vehicles compared to dated models is another reason why company fleets should take adavatge of the tax breaks and buy now.
'The Small Business tax break is also an incentive for business owners to improve the safety of their vehicle fleet. The incentive scheme is a fantastic chance for employers and managers to save money and to invest in the long term safety of their employees,' Mr Purchase revealed.
