13/07/2026
Why a $115k vehicle purchase can wait.
That $115k vehicle is not a business decision. It is a reward. And rewards are earned by the numbers, not the ego.
What I often see: a business owner in their first five years, revenue finally climbing, and a $100k-plus vehicle at the top of the wish list. Usually justified as "it's a tax deduction anyway."
A deduction is not a discount. The tax saving is a fraction of the price, and you are still spending real cash on an asset that loses value the day you drive it out of the yard.
For cars, the deduction is also smaller than most expect. The car cost limit caps how much you can depreciate and how much GST you can claim back, so a big slice of a $115k vehicle attracts no deduction at all.
In the first five years, that cash has a better job to do:
Building your buffer (cash)
& Funding growth
When has the business earned it? Before a purchase like that, I would want to see:
Consistent profit. Two to three years of it, after paying yourself a real market wage.
A real cash buffer. Three months of operating costs in reserve, untouched by the purchase.
Tax fully provided for. GST, income tax and super set aside, no ATO debt.
Repayments that fit. If they strain spare cash flow, you are buying stress, not a vehicle.
A genuine work need. If a $60k vehicle does the job, the extra $55k is lifestyle, not business.
Buy the vehicle the business needs now. Buy the one you want when the numbers say the business no longer needs that cash.
