By Tim Alexander and Phil Ringuet
With EOFY fast approaching, business owners or individuals who use their vehicles for business purposes should be alerted to the opportunity that purchasing a car or piece of equipment may present.
As part of the 2020-21 Budget, the government announced that it will continue to support businesses and encourage new investments to increase business cash flow via the Australian government’s instant asset write-off.
This presents a significant opportunity as purchasing vehicles and equipment qualifies as an asset and if clients are eligible it may allow them to claim the full cost of the depreciating purchased asset.
Who can benefit?
Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
The instant asset write-off can be used for:
- multiple assets, if the cost of each individual asset is less than the relevant threshold
- new and second-hand assets.
Types of equipment which may qualify:
| Motor Vehicles Industrial Plant & Equipment – Lathes, presses, etc |
Earthmoving Forklifts Boom Lifts/scissor lifts Medical equipment |
Tractors and agricultural equipment Trucks and trailers Energy Efficient |
An Important Message
While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.
