How do Car Allowances work

[Mr Bigglesworth]

Im about to be offered a promotion at work, and part of the deal is that I get a car allowance. The rough figure is $12,000. What I want to know is this, I currently own a car and it is fully paid off. What do I do with the $12,000? Can I get a trade in? Can I use it for fuel? Can I use it for a high-class hooker and coke?

Id appreciate any help here. Im naive on matters of corporate culture and shit like that.

[muppet]

Fuel, road tolls, car maintenance.. can't buy a new car tho :p try and get a company car :D

[Mr Bigglesworth]

Is that all? Fuck, I had my hooker picked out already.

Maybe if I fuck the hooker in the car, can I claim that as an expense?

[muppet]

only if she fills it with petrol first :D

[Mr Bigglesworth]

only if she fills it with petrol first :D

Sweet!

[Harold]

only if she fills it with petrol first :D

Then you get to fill her, Biggles. Its a win-win situation all round.

[astro]

Car allowance is technically to be used for: Fuel, Loan repayments, Rego, Insurance, Services and Repairs.

A car allowance is taxed very heavily right off the bat, somewhere around 48%, so I'm told. The beauty of this is that if you have a decent accountant, you can really squeeze every last penny out of the system and sometimes a little more to get yourself a fat tax return at the end of the financial year.

My accountant claims everything that I purchase to do with my vehicle, as well as the depreciation of the vehicle. A friend of mine does the same thing, but goes a little further. He has a work car (Subaru Liberty GT) and a project car (a classic 60s Dodge), but it's quite frequent that his tax returns will include things like "New Carbs for car", "440cc v8 engine" etc.

[dwarfthrower]

Maybe if I fuck the hooker in the car, can I claim that as an expense?

Screw her on the bonnet and she becomes a hood ornament.

[b2barker]

Speak to some people about novated leases. Calculator to fuck about with here (http://www.orix.com.au/html/solutions_products/novated_lease/calculators/index.html?2.2).
Wouldn't trade for novated lease car though, as you pay FBT on full value so financing full value is better. ie. Sell your current car and get the coke and hookers with the cash. The more km's you do in the car the better novated leases look. >25kkms is ideal.

[Mr Bigglesworth]

Im still waiting for further word on promotions, supposedly they need to find someone to fill my position first. Given it took them almost 2 years to find someone to do mine, im not holding my breath :(

Oh well, I can spend lots of time on the Z's. :)

[still life]

You could always sell your car to a leasing company, and buy it back on loan, then use the allowance to pay for the loan.

Then you invest your lump sump.... in hookers!

[Snapple]

I love you city folk, I never had to pay for parking, my sister told me you guys now have eftpos in taxi cabs, it blew me away.