Instant asset write-off for Utes & SUVs – FY 2019/20
June 3, 2020
Statewide Auto Group has a number of used utes, SUVs and pick-ups, which are eligible under the Federal Government’s $150,000 instant asset tax write-off scheme, due to expire on June 30, 2020.
Which vehicles qualify for the Instant Asset Write-off?
The incentive, announced in the lead-up to COVID-19 lockdowns, applies to certain types of motor vehicles.
New and used motor vehicles used exclusively for business and designed to carry less than one tonne and less than nine passengers (i.e. regular SUV’s and utes), may be eligible for an immediate tax deduction if the cost of the vehicle is less than $56,581 excl. GST.
Businesses may be able to claim the $150,000 immediate tax deduction if they purchase utes over $60,000, US-style pick-ups between $80,000-$150,000, and commercial utility vehicles not designed to carry passengers up to the value of $150,000.
Purchasing work vehicles with the Instant Asset Write-off
To be eligible and claim the full amount available to your individual business circumstances, the vehicle must be purchased and used exclusively for business purposes before June 30.
We encourage you to get in touch now to make use of this tax benefit, before June 30 rolls around. To support customers in the current climate, we are offering virtual tours, contactless payment and free delivery.
And, just to clarify for the dreamers out there: the scheme does NOT mean your business will get a juicy tax refund. If your business is eligible, the cost of the vehicle comes off the taxable income of your business this financial year, rather than over several years, which is still a pretty sweet deal from the tax man.
Meeting the June 30 deadline
While both new & used vehicles can qualify for the instant asset write-off, one requirement of the instant asset write-off is for the asset to be first used or installed ready for use before June 30. This may not be possible with many new cars with long delivery times. A used vehicle from Statewide Auto Group, however, can be quickly purchased and used in your business.
Can I add accessories to my new ute?
Yes, provided the total is under the threshold. This allows you to fit out your new work vehicle with all the roof racks, tool boxes, tow balls and other accessories you need – all while maximising your tax benefit.
How to claim the Instant Asset Write-off
Business owners interested in taking advantage of the scheme should contact their tax professional or accountant to discuss their individual circumstances and eligibility before picking up a new set of wheels.
Looking to make use of the Instant Asset Write-off before 30 June? Contact the team at Statewide Auto Group to find the right vehicle for your business needs. Get in touch today on (07) 3390 3057 or search our used 4WDs now.