$150,000 INSTANT ASSET WRITE-OFF
In good news for business owners shopping for their next work-related vehicle, the Federal Government has further extended its instant asset write-off scheme and expanded the eligibility criteria for claiming assets on tax as part of its freshly-unveiled Federal Budget.
What are the updated changes to the Instant Asset Write Off Scheme?
For business owners who purchased a car prior to the budget being announced all the previous criteria of the expanded instant asset write-off scheme still apply (you can read about the specifics here ), but those business owners will now have an extra six months in which to claim the vehicle on tax.
To be eligible to claim under this scheme, the business must have an aggregated turnover of less than $500 million and you have to have purchased your new car for under $150,000 anytime from May 12, 2015, to October 6, 2020 – plus had that asset installed and ready for use between March 12, 2020, and June 30, 2021.
But for business owners who are looking to buy a car after October 6, 2020, they'll now be able to access a brand-new scheme called "Temporary Full Expensing".
What is Temporary Full Expensing?
Temporary Full Expensing is essentially an updated version of the Instant Asset Write-Off scheme, but it's available to a bigger pool of businesses – those with a turnover of up to $5 billion – and it completely removes the $150,000 cost limit on the individual asset.
Temporary Full Expensing will allow eligible businesses to deduct the full cost of a new asset in the year it is first used or installed, as long as that asset is first held and installed between October 6, 2020, and June 30, 2023.
For more information on the instant asset write- off threshold click here:
Looking to take advantage of the increased instant asset write-off? Essendon Isuzu UTE have a great range of commercial vehicles to choose from:Real Deal Offers