By Phil Ringuet
In response to the Economic Impacts of COVID-19, the Federal Government has introduced an incentive package which encourages businesses to invest in equipment and motor vehicles.
The package will allow eligible businesses to invest in vehicles and equipment whilst receiving a one-off tax deduction on individual assets that are acquired, first used, or installed before 30th June 2020.
At a glance
- Available on new and used assets with a value < $150,000
- Assets must be used and or installed prior to June 30, 2020
- For investments of $150,000 or more, businesses can deduct 50% of the asset cost in the first financial year of service providing it is installed before June 30, 2021
- You may be able to finance under a chattel mortgage agreement and still claim the benefits of the instant asset write-off this financial year
Types of equipment which may qualify
- Motor vehicles
- Industrial plant & equipment – lathes, presses, etc
- Earthmoving equipment
- Boom lifts/scissor lifts
- Medical equipment
- Tractors and agricultural equipment
- Trucks and trailers
- Energy-efficient equipment
Need more help?
Vincents Lending Solutions provides finance for motor vehicles and equipment by providing;
- Market-leading rates – access to over 35+ asset finance providers
- Access to express and streamlined policies – no financials required for eligible applicants
- Rollover and replacement policies – no financials required to replace existing assets or accounts which have been closed in the last 6 months with a recognised lender
- Balloon refinancing – no financials required for commercial clients refinancing selected assets with an expiring balloon/residual or a current asset finance contract with less than 12 months remaining.
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.