What can you claim this tax time?

March, 2021

What can you claim this tax time?

If you are a Tradie or small business owner such as sole trader, partnership, company or trust; it pays to be certain on what you can claim on your tax return.

Temporary Full Expensing

What is temporary full expensing? It allows eligible businesses with an aggregated turnover under $5 billion to immediately deduct the business portion of the cost of eligible depreciating assets.

So, if you own a small business, you can deduct the business portion of the cost of an eligible asset immediately. Assets can be new or second-hand depreciating assets that are purchased between 6 October 2020 until 30 June 2022.

Instant Asset Write-off

If TFE doesn’t apply to an asset, you may still be able to use the instant asset write-off scheme.

It applies to assets that are first used or installed and ready for use between 12 March 2020 and 30 June 2021, and purchased by 31 December 2020. The threshold for the instant asset write-off is $150,000 for eligible businesses with an aggregated turnover of less than $500 million.

What can I claim?

Examples of assets that you could claim as an immediate deduction under either temporary full expensing or instant asset write-off are:

  • A car or ute
  • Computers, laptop or tablet
  • Tools: drills, grinder, electric saw, nail gun
  • Lawn mower and leaf blower
  • Ladders
  • Tool boxes
  • Work lights
  • High-pressure cleaners
  • Shelving and storage

Claiming a new or used car

A car limit applies to passenger vehicles that are designed to carry a load less than one tonne and fewer than nine passengers. The car limit is $59,136 for the 2020–21 income year.

If you purchase a car for your business and the car limit applies, your deduction under temporary full expensing and the instant asset write-off is limited to the business portion of the car limit.

For example, if you use your vehicle for 75% business use, the total you can claim for the 2020–21 income year is 75% of $59,136 – which is $44,352.

How can Carz4u help?

There has never been a better time to take advantage of asset write-off schemes and 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.