Australia may well be going through the worst recession since the Great Depression of the 1930s, but there’s a rare silver lining to those dark grey clouds of economic gloom in the form of the instant asset write-off for businesses that’s just been announced in the 2020 Australian Federal budget.
What it means for Australian businesses turning over less than $5 billion a year (and that’s 99% of them) is that the total cost of new, or even second hand, business assets can be written off over one year.
It’s all part of the Federal government’s stimulus efforts to get the economy moving in the face of the recession. It’s spending big in an effort to get business and consumers to spend up, boost the economy and create jobs.
For businesses around the country it’s a great opportunity to replace ageing equipment with more modern and efficient ones that suits your business better and helps to make your operation run smoother, more efficiently and more profitably.
Vehicles are a major expense and a big part of most businesses and vehicle technology is moving ahead at a dizzying pace. Features such as autonomous emergency braking, blind spot monitoring and adaptive cruise control once seemed out of this world. Today they’re becoming commonplace on regular everyday vehicles.
Day by day vehicles are becoming safer, more efficient and more reliable with an ever-increasing array of features that make them better for your business. Many businesses are discovering the advantages of fuel-saving hybrids and plug-in hybrids that tick all the boxes for running costs while reducing emissions.
Taking advantage of the government’s instant asset write-off is a business no-brainer. You get all the benefits of a better, more efficient vehicle fleet while writing the cost off against the tax man at the end of the financial year.
And it makes good business sense to take full advantage of the government’s stimulus measure by bundling up all the accessories your business vehicles need at the same time and write-off the entire cost against tax.
If you’re thinking of upgrading your vehicle fleet and using the instant asset write-off, then it’s just good business sense to get the right finance package.
Fleetcare’s range of competitive finance packages is the sensible way for your business to maximise those tax deductions while minimising your risks.
A Chattel Mortgage, also known as a Secured Loan, is an excellent way to finance your new vehicle. It requires no deposit, while offering flexible terms, and because you own the asset you can claim an input tax credit on the GST paid within the vehicles purchase price, along with claiming the instant asset write-off.
Make it easy
Fleetcare can make the whole process easy for you by negotiating with the dealer for the best price and bundling all those accessories and any fit-out you need into the deal. We’ll then arrange delivery for you. It couldn’t be easier, really.
To push those fleet savings even further you owe it to yourself and your business to talk to Fleetcare about the benefits of outsourcing your vehicle management through our tailored fleet management solutions.
When you’ve got fuel cards, roadside assistance, insurance and GPS tracking all taken care of you’ll find your business is operating smoothly and efficiently with those fleet costs under control.
If you’d like to find out more about a Fleetcare Secured Loan or the advantages of our tailored fleet management solutions, please call us on 134 333.
For running updates on Coronavirus fleet news please visit our dedicated Coronavirus Fleetcare page.
IMPORTANT NOTE - This content is current as at 06 October 2020 and provided for information purposes only. The information may not be suitable or appropriate for your organisation’s operations and needs. As such, please undertake your own independent assessment(s) and take into consideration any specific government laws and guidance. Response and advice regarding Coronavirus is changing rapidly and it is important that you keep up to date with all relevant information issued by the Australian Government.