Join our daily newsletter At The Bell to receive exclusive market insights
- Collaboration Corporation (CL8) has secured a favourable tax ruling for its Carly car subscribers from the Australian Taxation Office (ATO)
- Carly’s subscription model provides a lower risk option for customers that require cars but don’t want the long-term financial commitment
- Essentially, this ensures subscribers can claim car subscription payments as a tax deduction when the subscription is used for business or work purposes
- Significantly, Carly is the only car subscription offering that can provide the certainty of tax deductions
- Collaborate ended the day in the grey with shares flat at 0.9 cents
Collaboration Corporation (CL8) has secured a favourable tax ruling for its Carly car subscribers.
Carly’s subscription model is different from a traditional lease or loan model and provides a lower risk option for consumers and businesses that require cars but does not want to take the long-term financial commitment.
The company has secured a product ruling from the Australian Taxation Office (ATO) that provides a clear framework for business and work purposes to claim tax deductions.
Essentially, this ensures subscribers can claim the car subscription payments as a tax deduction when the subscription is used for business or work purposes.
This ATO ruling is exclusive to Carly which means Carly is the only car subscription offering that can provide the certainty of tax deductions.
“The ATO Product Ruling comes at the perfect time when working Australians and Australian businesses are looking at ways to increase their flexibility, de-risk finances and save on household or business budgets in the wake of COVID-19,” Carly CEO Chris Noon said.
Chris said that car subscription is a “hot topic right now”.
“We recently conducted research with Omnipoll and found 38 per cent of Australians would consider subscribing to a car rather than purchasing or leasing a vehicle,” he added.
“The financial pressures created by COVID-19 were found to be a key factor in consumer attitudes towards car subscription, with 18 per cent of Australians more likely to consider subscription as the best way to obtain a car compared to six months ago,” Chris explained.
Collaborate ended the day in the grey with shares flat at 0.9 cents.
