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navyjohn(Newbie)Newbie
6 Apr 2024

I operate, as a sole trader, a small management consultancy business. I'm thinking of upgrading my car to the latest model, whereby I receive a discount as an ABN holder. The vehicle that I'm thinking of purchasing is a 4WD but matches the ATO definition of a "car". If I accept the discount as an ABN holder, what are my obligations as far as taxation is concerned? The vehicle is clearly not a "commercial vehicle". Do I have to demonstrate, perhaps via a logbook, a certain level of business usage to justify the discount as an ABN holder?

3,388 views
4 replies
3,388 views
4 replies

Most helpful response

Most helpful reply

Deb_ATO(Community Support)Community Support
10 Apr 2024

Hi @navyjohn


Can you let me know more about the discount you're receiving. Is it the GST amount or a discount on the sale price?

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Most helpful reply

Deb_ATO(Community Support)Community Support
10 Apr 2024

Hi @navyjohn


Can you let me know more about the discount you're receiving. Is it the GST amount or a discount on the sale price?

navyjohn(Newbie)Newbie
15 Apr 2024

Hi Deb, thanks for your email... It says on the draft contract under "Special Conditions": "$1500 ABN Discount Applied". Cost of vehicle before Vehicle Licence Duty and 12 months rego is $61,623... so it can't be associated with the GST (which is stated as $5,602.09). I wonder if it's just an enticement for ABN holders to purchase SsangYong vehicles? Best, John S

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What are the tax implications if I accept a discount for ABN holders on the purchase of a new car? | ATO Community