Instant tax write off info trucks

If you haven't heard already, in the wake of COVID-19 the government have introduced a package designed to assist Australian businesses and economic growth. To find out if your company can benefit check out the government advice* below.

The Australian Government's Economic Response to Coronavirus

Tax write off business trucks

On 12 March 2020, the government announced a package of measures to help the economy withstand and recover from the economic impact of coronavirus. The following measures will be administered by the ATO.

The government intends to introduce legislation in late March 2020 to implement its Economic Response to Coronavirus.

Enhancing the instant asset write-off

Enhancing the instant asset write-off

The government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million).

Timing

This proposal applies from 12 March 2020 until 31 Dec 2020, for new or second-hand assets first used, or installed ready for use in this timeframe.

Enhancing the IAWO will require legislative changes before it can take effect.

Backing business incentive

Tax write off incentive business trucks

The government is introducing a time limited 15-month investment incentive to support business investment and economic growth over the short-term, by accelerating depreciation deductions.

A deduction of 50% of the cost of an eligible asset on installation will apply, with existing depreciation rules applying to the balance of the asset’s cost.

Eligibility

Eligible businesses – businesses with aggregated turnover below $500 million.

Eligible assets – new assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (that is, plant, equipment and specified intangible assets, such as patents). Does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.

Timing

Assets acquired after announcement and first used or installed by 30 June 2021.

Further Information

For more information on the Australian Government’s Economic Response to Coronavirus visit treasury.gov.au/coronavirus

Businesses can visit business.gov.au to find out more about how the economic response complements the range of support available to small and medium businesses.

Seek Independent Advice From Your Tax Professional

All customers are advised to seek independent professional tax advice in light of current tax laws, and your particular circumstances before making a decision in relation to any of the information provided above. 

Download Official Fact Sheet

Fact Sheet IAWO .PDF (207 Kb)

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Disclaimer

*Source: https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-Economic-Response-to-Coronavirus/

All customers are advised to seek independent professional tax advice in light of current tax laws, and your particular circumstances before making a decision in relation to any of the information provided above.