Instant Asset Write-Off!
Businesses buy now before 30 June and take advantage of the Government Instant Asset Write Off!*
The temporary instant asset write off has now been extended to 30 June 2023 (previously only to 30 June 2022). The instant asset write-off allows your business to receive an immediate tax deduction for your asset in your next tax return rather than receiving a deduction over a number of years, resulting in cash sooner for your business. New and used motor vehicles are included in the instant asset write-off.
What you need to know:
- Eligible businesses with combined annual turnover of $5 billion or less can deduct the full cost of eligible depreciable assets.
- The Instant Asset Write Off applies to new and used cars if the business has under $50M combined annual turnover, and new cars only up to $5B.
- The deduction is capped to the car cost limit for passenger vehicles at $60,733 (inc GST) from 1 July 2021, and there is no cap for commercial vehicles.
- Assets must be purchased after 6 October 2020 and installed and ready for use by 30 June 2023.
Want to maximise your cash even more? You can still finance your vehicle allowing you to further boost your cash in challenging times. Additionally, take advantage of some of the lowest rates we will probably ever see again in our lifetimes!
*We are unable to provide advice to you on the ability to claim this deduction for you and your business. Please consult with your accountant or tax agent. The vehicle must be delivered by 30 June 2022 to claim in the 2022 financial year. Certain car cost limits also apply. Further information and examples can be found on the ATO's website: https://www.ato.gov.au