New car delays could affect your instant asset write-off benefit for Financial Year 2021. Car delivery delays could have businesses missing out on the instant asset write-off benefit for their 2021 financial year. With production & shipment interruptions from COVID-19, some car delivery delays have been from 3 to 6 months. Dealers have reported that the only way of securing some of these new vehicles earlier is if a customer surrenders their place in the waiting que. To take advantage of the instant asset write-off scheme for this financial year (2021), buyers need to shop early.
Demand can’t keep up with supply!
The instant asset write-off scheme has contributed to record sales of utes and work vehicles in Australia. One such model, is the new Isuzu D-Max ute. The Federal Chamber of Automotive Industries reported the Isuzu D-Max ute as selling 2,409 in the month of December, breaking the June 2017 record of 2,388 sold. The report also added that although the total year-to-date sales had declined by 10.8%, this was more than likely due to COVID-19 interruptions.
Cheap Loans & Tax Benefits
Vehicle loans have also been affected by COVID-19. With the instant asset write off scheme, low-cost finance, and many other attractive tax incentives, there has been an influx in car loans. This spike in numbers has caused a back log of work, resulting in a slow-down of approvals. New car delays could affect your instant asset write-off benefit for Financial Year 2021. If you are considering purchasing a new vehicle to take advantage of the Instant Asset Write-Off Scheme, for this financial year, then don’t leave it too late. The instant asset write off scheme requires you to not only purchase your vehicle within the financial year but also have ownership. This scheme is available for another 2 financial years ending 30th June 2022.
Cheap Loans & Tax Benefits
Vehicle loans have also been affected by COVID-19. With the instant asset write off scheme, low-cost finance, and many other attractive tax incentives, there has been an influx in car loans. This spike in numbers has caused a
How the Instant Asset Write-Off Works!
The instant asset write-off scheme allows you to write-off the total value of a business vehicle at the end of the financial year as opposed to several years. The present historic low interest rates for finance with attractive tax incentives makes updating and upgrading work vehicles easier than ever. Many business owners are surprised at just how easy it is to purchase new vehicles with low-cost finance and no cash outlay. Not only does the instant asset write-off allow you to write off the cost of the purchase but also claim any improvements or fit outs. Unlike the previous $150K limit, there is now no cap on the value of the vehicle nor limit on the number of vehicles purchased.
Who is Eligible for Instant Asset Write-Off
Most Australian business owners will be eligible for the scheme. Provided your business does not exceed an annual turnover of $5 billion dollars, you will be able to claim the full amount of the vehicle.