Economic Stimulus Packages | CMI Toyota

Economic Stimulus Packages

Economic Stimulus Packages

The Australian Federal Government has released a range of Economic Stimulus Packages to help support businesses during this time. These packages include measures to assist businesses with the purchase of assets, including new and pre-owned vehicles.

As part of the 2020-21 Budget, the Australian Federal Government announced a further extension and updated rules for the Instant Asset Write-Off Scheme to assist businesses with the purchase of assets.

How do the new Instant Asset Write-Off Rules apply?

Business owners may be eligible for an immediate tax write-off of a new or second-hand vehicle up to any value (previously $150,000 maximum) if the asset is ordered, acquired, installed and ready for use between 6 October 2020 and 30 June 2022.

However, current Australian taxation legislation provides that the depreciation limit for a motor vehicle defined as a car* is $59,136 (from July 1 2020).
*The depreciation car limit applies to a vehicle classified as a ‘car’ (a vehicle designed to carry a load of less than 1 tonne and fewer than 9 passengers) in the tax legislation.

For example, this means cars below the depreciation limit, like Yaris, Corolla, Camry, C-HR and RAV4, may be eligible for a 100% Instant Asset Write-Off in the income year it is first ready for use if delivered by 30 June, 2022.

Vehicles over 1 tonne carrying capacity, such as our HiLux 4x4 Extra-Cab Cab-Chassis for example, may be eligible for a 100% write-off.

Please note this example is provided for explanatory purposes only, and should not be relied upon as tax advice.

How can the Instant Asset Write-Off scheme apply to you and your business?

From 6 October 2020 to 30 June 2022, for businesses with an aggregated annual turnover of less than $50 million, the Instant Asset Write-Off scheme continues to extend to eligible second-hand assets too. 

 

Find the Toyota vehicle that works for your business

There is an Instant Asset Write-Off available on every vehicle in the Toyota range. Ask your accountant about what benefit your business is eligible for and how it can be applied to your next Toyota purchase.

 

What does an ‘Instant Asset Write-Off’ actually mean?

As a business owner, you can potentially take advantage of this scheme to upgrade your business vehicle by immediately writing off eligible depreciable assets. Vehicles are amongst eligible assets. This circumvents you having to write-off the asset partially every year, in accordance with its variable depreciation rates.

Due to the recent COVID-19 pandemic, the Australian Government decided to increase the eligibility criteria for the scheme:

Increasing the purchase threshold and extending the Instant Asset Write-Off on second hand assets

Extending to businesses with a turnover of up to $500 million (previously $50 million)

Bringing forward the eligibility timeframe to cover assets that are purchased and ready to use between October 6 2020 to 30 June 2022

There is an Instant Asset Write-Off available on every vehicle in the Toyota range. Ask your accountant about what benefit your business is eligible for and how it can be applied to your next Toyota purchase.

It is important to note that this communication should not be used as tax advice. You should first speak with your accountant to see how this stimulus package applies to your business.


Further information on the Government's Stimulus Packages

Take a moment to watch Kochie's videos below which provide further details on the updates to the Federal Government's economic stimulus packages available, including the threshold increase of an instant asset write-off.

We encourage you to speak with your accountant or financial advisor to work on the best strategy for you, and which economic stimulus package can be applied to your circumstances.

 

Information for Fleet Customers

Have a watch as Kochie takes you through some of the changes announced in the 2020-21 Federal Budget and how they could benefit your Fleet Business

  • JobKeeper extension and JobMaker
  • Offsetting losses
  • Immediate Asset Write-Off and extension

BROWSE PRE-OWNED VEHICLES  BROWSE DEMO VEHICLES

BROWSE NEW VEHICLES

 

 

 

Information for ABN Holders

Have a watch as Kochie takes you through some of the changes announced in the 2020-21 Federal Budget and how they could benefit your business as an ABN holder.

  • JobKeeper extension, JobMaker and apprentice wage subsidies
  • Offsetting losses
  • Immediate Asset Write-Off and extension.

BROWSE PRE-OWNED VEHICLES  BROWSE DEMO VEHICLES

BROWSE NEW VEHICLES

 

The CMI Toyota team are committed to supporting all of our customers during the downturn which has been caused by the COVID-19 pandemic.

For further financial advice, please contact our team via the button below.

SUBMIT A FINANCE ENQUIRY

 


The information provided is general in nature and all customers must seek their own independent tax and accounting advice before making a vehicle purchase.

You can find out more about the Government's new Economic Stimulus Package via the button below.

FIND OUT MORE

 

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