Budget Tax Breaks

Budget Tax Break Car Bonanza

FEDERAL Budget tax breaks could spark a boom in new and used car sales to business owners.

Already, Holden has jumped on the budget bandwagon with promotions trumpeting tax savings on cars under $20,000.

Holden has flooded Google with ads showcasing new and used cars that qualify for instant tax deductions.

In the next five weeks small businesses and tradies can expect to see a rash of marketing from auto dealers urging them to save money on their next tax bill by buying cars before the end of the financial year.

If they were holding out for good news in the budget, they now have until June 30 to offload their old vehicle and almost instantly bank the tax savings on a new set of wheels.

With about four million Australians claiming work-related tax deductions on their cars every year, we’ve found some of the best new cars available for under $20,000.

While you shouldn’t expect to get some sought-after features such as auto transmission, climate control or leather trims, most have high safety ratings and great fuel efficiency.

Holden Cruze

Holden Cruze

The new model range released in March doesn’t match the feature set of some other models and carries a higher price tag but the update makes it a better buy.

Kia Cerato

Kia Cerato
Sergiy Palamarchuk / Shutterstock.com

The entry model has a price tag of a smidge under $20,000. It’s equipped with 6 airbags, a five-star safety rating and comes with a five-year unlimited kilometre warranty.

Nissan Pulsar

Nissan Pulsar
GoBOb / Shutterstock.com

A much maligned brand but the Pulsar offers value for money and is a good size. But don’t expect a quality finish or spectacular performance.

VW Polo

VW Polo

Priced from around $16,000, the basic package is not as polished as its better-optioned siblings but is a good vehicle.

Ford Fiesta

Ford Fiesta
ommaphat chotirat / Shutterstock.com

A top performer for a long time and even better with the 2015 updates. But don’t expect all the trims in the base model – you’ll be spending upwards of $25K for those.

Mitsubishi Mirage

Mitsubishi Mirage
Zoran Karapancev / Shutterstock.com

The entry level ES CVT is about the cheapest option but you don’t get 15-inch wheels, foglights, cruise control, climate control or extra speakers.

Don’t forget there are plenty of one-owner 2013 and 2014 models – and new cab-chassis utes and light commercials on the market that will qualify for the 100% write-of this financial year.

They include Ford Ranger, Toyota Hilux, Holden Combo and Renault Kangoo.

Or you could choose a higher-optioned model on a one or two-year-old vehicle.

For business owners, right now just might be the best time ever to upgrade their vehicle, which means it’s also the best time to chat to Are You Selling about getting cash for your old car.

MORE: Which Used Car Should I Buy?