How Temporary Full Expensing Can Help You Buy a Car
The instant asset write-off was introduced to help small businesses claim an immediate deduction for the business portion of an asset, in a period of tough economic change.
Due to the impact COVID19 had on our economy, the Government increased the instant asset write-off threshold from $30,000 to $150,000 in March 2020.
Now, the Government says there is no limit on asset prices. Business owners purchasing an asset will now be able to access a new scheme called “temporary full expensing”. This is essentially an updated version of the instant asset write off scheme.
If you are a business owner, this is great news! It means you will have more time to access cash flow benefits provided by temporary full expensing by being able to immediately deduct purchases of eligible new or used assets.
Who can claim?
Temporary full expensing is available to those businesses with a turnover of up to $5 billion, which means thousands more businesses are eligible to take advantage of the offer.
If your business is eligible, you’ll be able to claim back either part or all of the cost of a new work-related vehicle.
The scheme will apply to eligible assets purchased from 7.30pm AEST on 6 October 2020 and first used or installed by 30 June 2022. It is also subject to legislation passing through parliament.
What can I claim?
You can claim on assets such as:
* New or used car, utility, van or truck
* Tools and equipment
* Computers, laptops or tablets
* Office furniture
Are you looking to buy a car?
Car limits on what you can claim back do apply with passenger vehicles. This is $59,136 for the 2020-21 income year. However, if your work-related vehicle can carry more than one tonne or nine or more passengers, you can claim back the full purchase price.
To read more about the car limits, click here.
How can Carz4U help?
Carz4U has hand-selected a large range of quality used cars, utilities, 4x4’s, vans and SUV’s. If you need to upgrade your work vehicle, look no further!
View our range of used cars, utes and vans today!
This information is provided as a guide only. It is important to note that you should get your own professional advice before making financial decisions as individual circumstances may vary. Exclusions and limits do apply. Please see ATO.