You can claim a deduction for a percentage of the cost price of the car over several years through the 'general small business pool'. This percentage should represent the proportion that you use the car for earning income (as opposed to personal use).
The proportion of the time that you use the car for earning income is called the 'taxable purpose proportion'.
Where the cost of the car is greater than $20,000 an amount representing the taxable purpose proportion of the cost price is included in your general small business pool.
Small business pool:
Assets that are expected to depreciate in value (such as cars) that have a cost price of more than $20,000 are allocated to your 'general small business pool'. You can claim tax deductions for these amounts (less GST), however they are spread over time.
15% of the taxable purpose proportion of the cost of the car is deductible in the income year in which it was purchased. The remainder of the taxable purpose proportion is assigned to the pool.
Each year you are also entitled to claim a deduction for 30% of the value of the opening balance of the pool.
The effect of this is that 15% of the deductible portion of the cost of the car is deducted in the year in which it was purchased and the remainder is deducted at the rate of 30% of the remaining value, year-on-year.
Jennifer purchased a new car on 1 July 2015 for $30,000. 50% of her use of the car is for a taxable purpose (e.g. ride sharing). Jennifer is not entitled to write off the asset by claiming an immediate deduction as the cost price is >$20,000.
The taxable purpose proportion of the cost price of the car (i.e. $15,000) is added to Jennifer's small business pool. Jennifer can claim an immediate deduction for 15% of the taxable purpose proportion of the car, being $2,250.
She will then claim a deduction for 30% of the balance of the small business pool in her next tax return (being 30% of the remaining $12,750 - or $3,825).
Note: In following years, if the opening balance of your small business pool is less than $20,000 you can deduct the full amount in your tax return.