Small business taxpayers (turnover of 2m or less) will be able to instantly write off the first $5,000 of any motor vehicle purchased from 1 July 2012. So this would be a tax deduction regardless of what point in the year you bought the car. You would then also claim normal depreciation on the remainder.

This is strange, perhaps a token offset to the car industry for the FBT changes relating to cars, but nonetheless a planning opportunity for small businesses.

Items to clarify here will be whether the method of finance will make a difference to eligibility. 

This vehicle write off is in addition to the 2010 budget promise of immediate write off for ALL assets valued under $5,000 (currently $1,000). This one also starts 1 July 2012.