Three tax tricks to save thousands of dollars on a car this year: 'Good time'

Yahoo

16-05-2025

It's that time again. June 30 is just around the corner and with it — tax time.
Despite cost-of-living pressures, it's clear that Australians' thirst to buy a new vehicle hasn't lost much traction.
In fact, according to data from Compare the Market, more than one-in-10 (11.8 per cent) want to buy one this year and the majority (55.6 per cent) are pondering on buying a new car in the next few years.
With tax time approaching and big offers from car brands, it's a good time to consider buying a new car. Here are a few money-saving tips for getting into new wheels.
Consider the tax incentives on offer for eligible Australians, too.
Employees who can access novated leasing and choose an eligible electric vehicle model can benefit from the government's fringe benefits tax (FBT) exemption while lowering your payable tax, which could mean hundreds in your back pocket compared to salary packaging a conventional combustion engine car.
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Some states offer discounted registration and stamp duty for eligible EVs as well.
If you're a small business or use a vehicle for business purposes, you could be eligible for the Australian Government's instant asset write-off.
The vehicle value must be $20,000 or less (in total or based on the estimated proportion that it is used for business purposes) in order to be eligible.
This scheme will be extended past June 30, but this is the chance to write it off sooner rather than next year.
Don't forget that the car you buy should suit your budget, needs and preferences, so don't always be swayed by a tempting offer on a seven-seat large SUV when you rarely use four.
Additionally, dealers may encourage would-be buyers to pay more for extra add-ons such as paint protection and window tinting – but make sure to quote around and not be stung.
Nearly half of Australians surveyed by Compare the Market said they are primarily considering a petrol-engine vehicle.
Yet, there are significant fuel cost savings to be had by choosing a hybrid car, and even more by owning a full electric vehicle and charging at home – long-term money-saving wins amid cost-of-living pressures.
Whichever model you choose, it's a good time to consider buying a new car if you can afford it – but just remember to shop around.
New car sales have slowed down this year – and manufacturers are offering big incentives to lure consumers in, from price discounts to free servicing and even gift cards.
But be sure to check the fine print.
Consider whether that car loan deposit contribution is worth it when the interest rate could be higher than other lenders by financing with the dealer.
It's also worth factoring those pesky running costs as well, including insurance.
The team at Compare the Market regularly find big price differences between the cheapest and most expensive insurer – an eye-watering $3,100 in the case of the Tesla Model 3 for similar cover!* Just shop around to avoid being stung.
Compare the Market commissioned PureProfile to survey a nationally representative sample of 1,009 Australians in April 2025.
Always read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to check for the inclusions, exclusions and restrictions before purchasing.
Comprehensive car insurance premiums were quoted using Compare the Market's car insurance comparison tool and other well-known insurance brands, based on a next-day 15 March 2025 commencement date.