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Deciding to make a business vehicle purchase starts with understanding how it’s different to buying a personal car – especially when it comes to tax. If your plan is to use it mainly for work – like carrying tools, visiting clients or making deliveries, you may be able to claim tax benefits. You’ll just need to track how much of its use is for business.
The structure of your business also plays a key role. If you’re a sole trader or in a partnership, chances are you’re using the same vehicle for both business and personal trips, so keeping an accurate record will help show how much of your use is specifically work-related. If you’re running a company or trust, you might classify the vehicle as a dedicated business asset – but you’ll still need to track how it’s used to stay compliant and make the right choices when it comes to tax time.
To make things easier, we highly recommend keeping a logbook that shows when and how you use your vehicle for business. You might want to use digital tools to simplify this process and reduce admin over time. Software like Toyota Halo can help you automate the logbooking process to save you time and ensure you accurately account for work-related vehicle use.
Your day-to-day needs play a big part in the vehicle you pick. If you’re in a city, a Hybrid Electric like the Toyota Corolla could be a great option. If you’re in construction and trades, a HiLux, HiAce or capable SUV like the Prado might be better suited. Making the right choice from the start should make running your business easier – and set you up for the road ahead. Our team can answer all your questions and get you there with confidence.
GET IN TOUCHBuying a vehicle through your business can come with a range of tax benefits – if you meet the criteria. You could assess potential write-offs, GST credits and tax deductions on depreciating vehicles, all of which can reduce your overall tax bill.
Take the pooled assets depreciation method, for example. A small business depreciation pool is a way for eligible small businesses to group together (or “pool”) their eligible depreciating assets and claim simplified depreciation deductions on the whole pool. This can save time and boosts deductions earlier on.
Another alternative is to claim GST credits based on how much you use the vehicle for work. Here, you’ll just need to make sure you're registered for GST and hold onto the right records.
If your business is a company or trust, you’ll need to keep GST fringe benefits tax in mind, which can apply if your vehicle is used for non-work activities like school drop-off, weekend errands and other personal trips. Here, it’s important to be really clear on who’ll be using the vehicle, how often and whether this includes personal use. Keeping an accurate logbook – analogue or digital – will help you stay on top of it all.
How you claim tax benefits on your vehicle depends on your business setup. Each comes with its own rules, so it’s worth understanding what applies to you. If you’re not sure what the best business structure for car ownership is in your case, chat to your accountant or tax adviser who can help you make the right call.
Strategies for sole traders
If you’re a sole trader, there’s a good chance you’ll be using your vehicle for both business and personal trips. You’ll need to keep a detailed record – like a logbook and running costs that show how much of your driving is for work. You can then claim this percentage back on fuel, servicing, insurance and depreciation.
Strategies for partnerships
For partnerships, make sure your vehicle expenses and ownership are clearly split by each owner, and that each person tracks their own usage. This will help you both claim the right share of running costs and depreciation.
Strategies for companies and trusts
If you have a company or trust, the vehicle is usually owned by the business – not you personally. That means fringe benefits tax may apply if it’s also used for personal trips. The upside? You get a bit more flexibility with managing costs, through options like salary packaging or leasing. Just be sure you have clear rules and records in place to avoid any surprises at tax time.
Good record-keeping isn’t just about staying compliant – it can also help you manage tax time with more confidence, make this process easier and help you get the most out of your claims.
A business logbook is your friend here. To meet ATO requirements, you’ll need to log at least 12 continuous weeks, including trip details, odometer readings and your reason for each journey. This is important in helping establish what percentage it’s used for business – and what you’re eligible to claim.
You may find an expense tracking app or digital logbook (included with Toyota Halo) will save you time and reduce admin. These also help you track costs like fuel, servicing, insurance and your vehicle’s depreciation.
Having your car expense record keeping in order also means you’re prepared if you’re ever audited. Keep your receipts, invoices and records consistent, easy to access and clearly labelled.
When it comes to financing a vehicle for your business, there isn’t one right way of doing things and you’ve got a few options ahead of you. You could pay upfront, or finance through a loan or lease, each of which has different pros, cons and tax considerations. To help you choose the finance option that best suits your needs, Toyota for Business has a team of experts on hand to help you make the right decision.
Outright purchase
Buying a vehicle outright means it belongs to you from day one. There’s no repayments, no interest and no finance admin to think about later. While it’s a simple, stress-free option if you have the cash on hand, paying in full upfront might impact how flexible you can be with spending elsewhere in your business.
Finance loan
If you’d rather spread out the cost of a new vehicle over time, you could consider a loan. You’ll make regular repayments with interest, which can help manage your cash flow, especially if you’d prefer to keep these funds free. Depending on your setup, your accountant may be able to help you work out any tax deductions or GST credits you’re eligible for.
Chattel mortgage
With a chattel mortgage, your business owns the vehicle upfront, but you pay it off over time. Your loan is secured against the car, which can help you get a better interest rate. If your business is GST registered or you’re planning to use your vehicle mainly for business, this could be a great option, as you might be able to claim the GST on the purchase price upfront.
Novated lease
A novated lease is a salary packaging arrangement between you, your employee and Toyota Finance. With this option, your employee leases the vehicle using their pre-tax income, which can lower their taxable earnings and offer them more flexibility. It can be a great hands-off option if your employees are the ones driving the vehicle – not you. Just keep in mind that ownership stays with Toyota Finance, not your business, and fringe benefits tax may apply if your employee uses the vehicle for personal trips.
Operating lease
With an operating lease, your business doesn’t own the vehicle – think of this like renting it for a set period. This option often includes handy extras like servicing and maintenance, which can take the pressure off managing those costs yourself. It could be a solid option if you regularly upgrade your vehicles or run a larger business with a growing fleet.
From your first business vehicle to managing a growing fleet, we offer finance options designed to suit your priorities.
If you’re a sole trader or smaller business, small business vehicle financing options like a finance loan or chattel mortgage mean you don’t have to pay the full amount upfront. These flexible options can also work well if your business is mid-sized, you’re balancing a few vehicles or planning for growth. You could also consider an operating lease, especially if you’d rather keep your cash flow more flexible.
If you have a larger business or enterprise and have vehicles across different sites, then operating or novated leases could help make life simpler. Plus, you may find these options come with tax advantages, depending on how your vehicles are used.
When you’re choosing a business vehicle, it’s easy to only look as far as the price tag. But you really need to plan ahead by considering the business vehicle’s total cost of ownership – that’s how well the vehicle will serve your business over time.
Some vehicles hold their value better than others, meaning you’ll get more back when it’s time to upgrade. You’ll also need to factor in day-to-day costs like fuel, servicing, insurance and rego, which can vary depending on how often your vehicle’s used.
Our Business Support Team can help you learn more about keeping the true cost of ownership down, or give you a personalised calculation.
GET IN TOUCHChoosing the right vehicle starts with understanding how your business operates – and will operate in the future. Going with the right vehicle or fleet could make your workday smoother, reduce your running costs and support your team as you grow.
Think about how you’ll use it, whether that’s driving around the city, visiting worksites, travelling regionally or making deliveries. This will help you decide whether you need a smaller vehicle, a HiLux, a HiAce or an SUV.
You’ll need to consider numbers too. While you might only need one vehicle now, that could change over time. By planning ahead, you can avoid outgrowing your setup too quickly. That way, you’ll make smart decisions that work hard for your business, whatever the future has in store.
Every business is different, so we’re on hand to help you land on a solution that actually works. If you’re buying a car with an ABN, great news – you might be eligible for business pricing. Chat to our dedicated team about ABN car deals to see what we can unlock for you.
Thinking bigger? If you’re buying more than one vehicle or looking to grow your fleet, we can get you there too. You may be eligible for business fleet discount thresholds, so we’ll guide you to making the most of them.
Once you’ve chosen your vehicle and agreed on a deal, there’s just a bit of paperwork to take care of before you hit the road.
The business vehicle purchase paperwork you’ll need will depend on your setup. If you’re a sole trader, that’s usually an ABN and your proof of identity. If you run a company or trust, you’ll likely need extra documentation like business registration details or proof of directorship.
And don’t forget insurance – it’s one of those things you hope you’ll never need, but will be glad it’s there if you do. Whether you’re adding the vehicle to an existing policy or starting fresh, check your cover lines up with how the vehicle will actually be used in your business.
You’ll also need to get your vehicle registered under your business name. Our specialists are on hand to help with that, along with everything else that needs arranging before you get the keys.
Explore fleet plansWhether your business is in plumbing or electrical, pest control or tech repairs, you’re running solo or managing a growing team, you’ll know the impact a vehicle will have on your day. It’s more than a way to get from A to B – it’s a mobile workplace, a storage system and your brand on wheels.
When it comes to service business vehicle selection, look for a reliable, spacious vehicle like the HiLux and HiAce that can handle your gear, adapt to your schedule and help you show up looking professional.
Construction business vehicles do more than just get you to a site – they’re part of the job. From hauling heavy loads to keeping your tools secure, they have to be built to handle hard work without breaking a sweat.
The HiLux and LandCruiser 70 are solid favourites for just those reasons, with plenty of towing power, flexible storage options and the durability to take on rugged conditions. That includes the clearance, grip and durability to get in and out of any worksite. Whether you need a single cab for solo site runs or a dual cab with room for extra hands, we’ve got a setup that works for your trade.
When your work involves meeting clients or making a strong first impression, your vehicle becomes part of your brand. It’s the first thing people see when you pull up – and it says a lot before you even step out.
Professional services company cars typically prioritise comfort, reliability and presentation. Whether you’re transporting clients or travelling between meetings, an SUV or a Hybrid Electric sedan can be an efficient and sharp option that’ll also keep running costs down. Plus, they come with the tech and safety smarts to help keep you connected and protected wherever the workday takes you.
GET IN TOUCHWhether you’re operating a single vehicle or a full fleet, Toyota business cars and commercial vehicles have the range and reliability to keep your business moving. From compact and efficient, to tough and ready for work, there’s a Toyota built to suit your business.
There is no one-size-fits-all when it comes to the way you run your business, which is why all Toyota fleet vehicles come with flexible payment plans and dedicated support through your local Toyota Support Specialist. We also offer capped price servicing through our Toyota Service Advantage, so there’s no surprises when it comes to maintenance costs. Plus, as a business customer, you’ll get access to programs designed for you in mind, along with the peace of mind that comes with Toyota’s reputation for quality and resale value.
Chat to our team about exploring our latest offers and discover fleet solutions that fit your business needs.
From buying your first vehicle to commanding a full fleet, buying a car through your business can deliver serious value. And with the right structure, planning and support from us here at Toyota, the process can be a lot more straightforward than you might think.
No matter the size of your business, our team is ready to help you make smart, informed decisions to hit your structure and goals. From finding the finance option that works best for you to choosing the right vehicle to suit your business, your local Toyota for Business expert can guide you through it all, to wherever you're headed next.
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