Car purchase from company pty ltd deductions

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(Newbie)Newbie

6 Feb 2025

Hi team

I have a company pty ltd, GST registered. 1 director myself. I intend to purchase a car listed under the company from company funds. For 100% business use.

The price will be under the car limit of $69674 for 24/25 FY.

Can the total amount less the GST be an instant tax write off or the amount less GST will be depreciated every year?

are all the running costs of the car, rego, insurance, petrol and maintenance all an expense deduction from the business (can insert into BAS too)?

thank you for your help

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AriATO

(Community Support)Community Support

17 Feb 2025

Hi @JMc30710

Since the company is registered for GST, the business can claim a GST credit for the GST paid. It can then depreciate the remaining amount over several years. There's no option to write off the amount all at once right now.

All running costs are normally eligible business deductions. These amounts exclude GST because the company can claim the paid in their BAS.

Check out Effect of GST credits on income tax deductions for further info.