Am I eligible to claim the 50% rebate on a business vehicle?

I am a sole trader and I am interested in buying a new vehicle. Am I able to claim the 50% rebate?

The vehicle would be for the sole purpose of the business as I will not be trading my car in.

I am not sure if I am eligible as I am only a new business (about two years old), and part-time as I still am required to work full-time until I can build up the business. The business is function designing and hire. As I am still building the business, at this time I do not claim GST. So I’m not sure if I can claim the rebate at all.

To be eligible for the investment allowance, you must purchase an eligible asset that will be primarily used in your business in Australia.

A car is an eligible asset for the investment allowance. You simply need to be able to establish that the vehicle will be primarily used in your business. This would be tested on a usage basis. You would need to be able to prove that more than 50% of the usage was for business purposes.

The fact that your business is in start-up phase does not preclude your eligibility. You probably need to get some advice specific to your situation. It would be a good idea to go over the facts with your accountant.

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