Are you in the market for a new vehicle or truck loan? According to the Australian Taxation Office; “under the instant asset write-off, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.”
What does this mean for you? Well, there has been a lot of talk about the instant asset write off which transport companies can use to purchase new vehicles. Keep reading to find out if you are eligible for instant asset write-off.
Instant Asset Write-Off
If you are eligible for an instant asset write-off, it can be used for:
- Multiple assets so long as the cost of each asset is below the relevant threshold.
- Second-hand assets.
- Newly purchased assets.
The instant asset write-off cannot be used for assets that have been excluded from the simplified depreciation rules.
Here is what you need to know about the updates to this policy eligible from March 2020 until the end of December 2020:
- threshold amount for each asset is $150,000 (up from $30,000)
- eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
Am I Eligible?
The eligibility to use instant asset write-off on an asset depends on:
- the cost of the asset
- when it was first used or installed
- the date you bought the asset
- your aggregated turnover
If you run a small business and choose to use the simplified depreciation rules, we encourage you to use instant asset write-off on all eligible assets. Why not score a new truck loan? We can show you how.
For more vehicle finance information and updates on truck loans and finance for other vehicles, get in touch with ZEP Finance. We provide easy to understand financial solutions that are tailored to your immediate and future goals.