Incase you’re not yet aware, the Australian Government has announced a new Economic Stimulus Package for businesses to assist with the purchase of assets.
Have you been thinking about upgrading your business vehicle?
Businesses can now claim an immediate tax write-off on a new or used assets up to the value of $150,000 (previously $30,000) if the asset is installed and ready for use by 30 June 2020.
Due to the recent COVID-19 pandemic, the Australian Government decided to increase the eligibility criteria for this scheme:
- Increasing the purchase threshold to $150,000
- Extending to businesses with a turnover of up to $500 million (previously $50 million)
- Bringing forward the eligibility timeframe to cover assets that are purchased and ready to use between 12 March and 30 June 2020
What is in the stimulus package?
- Immediate tax write-off of a new or second-hand asset up to the value of $150,000 (previously $30,000) if the asset is installed and ready for use by 30 June 2020.
- Immediate 50% tax write-off of a new asset of unlimited value, purchased and delivered between 1 July 2020 to 30 June 2021, with existing depreciation rules for the balance of the asset value.
However, current Australian taxation legislation provides that the depreciation limit for a motor vehicle defined as a car* is up to $57,581.
This means that cars below $57,581; like Yaris, Corolla, Camry, C-HR & RAV4 may be eligible for a 100% Instant Asset Write-Off if delivered by 1 July 2020. Vehicles above 1 tonne carrying capacity such as our HiLux 4x4 Extra-Cab Cab-Chassis, may be eligible for a 100% write-off up to $150,000.
Please note this example is provided for explanatory purposes only, and should not be relied upon as tax advice.
TAKE ADVANTAGE OF THE FEDERAL GOVERNMENT'S
INSTANT ASSET WRITE OFF
VIEW YARIS RANGE VIEW COROLLA RANGE VIEW CAMRY RANGE VIEW 86 RANGE VIEW GR SUPRA RANGE
SUVs & 4WDs
VIEW C-HR RANGE VIEW RAV4 RANGE VIEW KLUGER RANGE VIEW PRADO RANGE
VIEW HILUX RANGE VIEW LandCruiser 200 RANGE VIEW FORTUNER RANGE
Utes & Vans
VIEW HILUX RANGE VIEW LANDCRUISER 70 RANGE VIEW HIACE RANGE VIEW COASTER RANGE VIEW GRANVIA RANGE
There is an Instant Asset Write-Off available on every vehicle in the Toyota range.
Ask your accountant about what benefit your business is eligible for and how it can be applied to your next Toyota purchase.
Need more information?
Download PDF Visit the ATO website
*The depreciation car limit applies to a vehicle classified as a ‘car’ (a vehicle designed to carry a load of less than 1 tonne and fewer than 9 passengers) in the tax legislation.
It is important to note that this communication should not be used as tax advice. You should first speak with your accountant to see how this stimulus package applies to your business.
READ THE FULL AUSTRALIAN GOVERNMENT ANNOUNCEMENT here.
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