Australian Tradies, you may be able to claim over $50,000 off your work vehicle using the instant asset write-off – but you have to act before the end of December.
As November ticks down, the end date of the Australian Government’s Instant Asset Write-Off extension comes closer. In response to COVID-19, the 2019-2020 financial year’s instant asset write-off threshold was increased to $150,000 from $30,000.
The eligible businesses restrictions were also eased. Now businesses with an aggregated turnover of less than $500 million can claim these asset-write offs. Before the extension, the limit was an aggregated turnover of $50 million.
This means you or your workers could be entitled to massive returns on their equipment and vehicles. So, if you’ve experienced a breakdown, or are looking for an upgrade, this is a perfect opportunity to save money.
Before you read on, here’s a list of objects you can claim using the instant asset write-off:
- Drills
- Electric sanders
- Electric saws
- Grinders
- Leaf blowers
- Lawnmowers
- Nail guns
- Ladders
- Toolboxes
- Work lights
- High-pressure water cleaners
- Concrete mixers
- Computers, laptops and tablets
So the big question is ‘What can I use it on?’ Well, the answer is pretty much anything listed above, but there are limits placed on car purchases.
The car limit applies to a vehicle designed to carry less than a tonne, and fewer than nine passengers. Essentially, you will only be able to claim $57,581 for the 2019-20 income year and $59,136 for the 2020-21 income year.
The limit does not apply to motorcycles or similar vehicles, or vehicles fitted out for use by people living with a disability. Trucks, utes and other vehicles designed to carry more than a one-tonne load are eligible to claim the full price ($150,00) on the instant asset write-off.
The CarAdvice team have done a great job at breaking down the intricacies of the plan: Read more here!
Also, check the Australian Government’s website here so you’re certain on what you can claim.
Get in soon because from 1 January 2021, the instant asset write-off eligibility will drop significantly, as only small businesses with an aggregated turnover of less than $10 million will be eligible for a $1,000 threshold.
You can claim a range of Austates products on the instant asset write-off. Have a look at our product range and install your vehicle with a custom spray system, or with pest and weed equipment before the new year.