Buying a car in Australia — personal or company name?
It's one of the most common questions Australian business owners ask us: should I buy this car personally, or put it in the company name? The answer depends on usage patterns, your business structure, and whether you're prepared to pay Fringe Benefits Tax (FBT). Here's the honest comparison — with real numbers — so you can decide.
Buying a car in Australia — personal or company name?
It's one of the most common questions Australian business owners ask us: should I buy this car personally, or put it in the company name? The answer depends on usage patterns, your business structure, and whether you're prepared to pay Fringe Benefits Tax (FBT). Here's the honest comparison — with real numbers — so you can decide.
The core trade-off
Buying personally means simpler tax — you only claim work-related kilometres (cents-per-km method) or a logbook proportion of running costs. Buying through the company unlocks GST credits, immediate write-offs and full deductibility of all running costs — but exposes you to Fringe Benefits Tax on any personal use. Whether the FBT cost outweighs the tax benefits depends on how you use the car.
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Buying personally — the simple option
If your work-related use is below 5,000 km per year and the car is mostly for private use, buying personally is almost always the best answer. You claim 88¢ per work-related kilometre (FY2025–26 rate) up to 5,000 km, without needing a logbook. Above 5,000 km, you switch to the logbook method and claim the business-use proportion of fuel, rego, insurance, servicing and depreciation.
How we help you make it happen.
From compliance to optimisation — pick a topic to explore how we work with you.
GST credit
Companies claim back the GST on the purchase price, up to the luxury car tax limit ($69,674 in FY2025–26).
Instant asset write-off
Cars under $20,000 are immediately deductible for small business entities — until 30 June 2025 (program subject to extension each Budget).
Depreciation cap
Cars above the LCT limit ($91,387 in FY2025–26 for fuel-efficient vehicles) cap depreciation at the limit — luxury portion is not deductible.
100% running costs
Fuel, rego, insurance, servicing, tyres, parking — fully deductible (with FBT adjustment for any private use).
Interest on car loan
Fully deductible if the car is on the company balance sheet and used for business.
