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Accelerated initial deduction for motor vehicles
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Small businesses can claim up to $5,000 as an immediate deduction for motor vehicles, with effect for vehicles acquired from the 2012-13 income year.
The remainder of the motor vehicle value is pooled in the general small business pool (depreciated at 15% in the first year and then 30%).
This reform is closely related to another previously announced measure that allows small businesses to immediately write-off any new business asset worth less than $6,500 from the 2012-13 income year onwards.
This measure received royal assent on 29 March 2012 and will come into effect from 1 July 2012
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