*Update* On the 09th June 2020, the Australian Government announced the increase of the instant asset write-off threshold from $30,000 to $150,000 will be extended until 31st December 2020 (previously 30th June 2020).
In the current economic climate, business owners need to focus on making the best decision for their employees and their ongoing operations. If you require a vehicle for your business, now may the time to make the purchase, by taking advantage of the instant asset write-off to maximise your deductions.
Due to the recent coronavirus pandemic, the Australian Government has announced an increase to the instant asset write-off threshold from $30,000 to $150,000. This applies to new or second-hand vehicles delivered between the 12th March 2020 until the 31st December 2020.
Eligible businesses will be able to write off multiple vehicles, both new and second-hand so long as they are delivered ready for use prior the 31st December 2020.
How will this benefit me?
Improve cashflow: Claiming the instant asset write-off for business vehicles can improve your cashflow and provide a much-needed uplift for your business during a difficult financial environment.
Update your fleet: Use this time to update your fleet, choosing from a wide range of vehicles that will ensure your business is ready to meet productivity demands and support your customers.
Write off accessories: Bundle accessories and fit-out charges into the cost of the asset and write-off the total amount.
Access fleet discounts: By purchasing your vehicle with a Fleetcare Secured Loan, you’ll benefit from national fleet discounts on the vehicle and accessories. We can also assist with dealer negotiation, fit-out, livery and delivery!
Choose your finance wisely
Before claiming the deduction, you’ll need a cost-effective way to finance the new vehicles. Fleetcare offer a range of competitive finance products that will minimise your risk and maximise your deductions. “If you’re currently looking at upgrading your business assets and are considering some new vehicles, a secured loan or chattel mortgage with Fleetcare is a great way to maximise your tax deductions,” Fleetcare’s National Group Leasing Manager, Dereck Cooke said.
A Secured Loan, also known as Chattel Mortgage,
is a no-deposit vehicle finance option with flexible terms. As you own the asset, you can take advantage of the instant asset write-off as part of your business tax return this financial year. This is a great way to ensure you can take advantage of this government incentive without the immediate cash outlay.
Bundle your benefits
Increase your deductible value by bundling accessories and fit-out into the asset cost. At Fleetcare, we can arrange this for you as part of the vehicle purchasing process, as well as negotiating with the dealer and arranging delivery.
To bundle your expenses further, you may also want to consider outsourcing the ongoing management of the vehicle. Fleetcare can suggest a tailored fleet management solution to suit your business including fuel cards, roadside assistance, GPS tracking, insurance and more. Our fleet management experts are available to discuss your options to increase efficiency and reduce costs.
If you’re interested in taking out a Secured Loan with Fleetcare or would like to learn more about Instant Asset Write-Off, please call us on 134 333.
Fleetcare’s Instant Asset Write-Off
Treasury Coronavirus Economic Response
Business Investment Factsheet
For running updates on Coronavirus fleet news please visit our dedicated Coronavirus Fleetcare page.
IMPORTANT NOTE - This content is current as at 09 June 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.