Economic Stimulus Packages | CMI Toyota

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.

What's in the Stimulus Package?

Instant Asset Write Off

Immediate tax write-off of a new or second-hand asset up to the value of $150,000^ (previously $30,000) if the asset is delivered and ready for use by 31 December 2020.

Backing business investment

Immediate 50% tax write-off of a new asset of unlimited value, purchased and delivered between 1 July 2020 to 30 June 2021, with existing depreciation rules for the balance of the asset value.

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.

What does this mean when purchasing a vehicle for my business?

^For example, this means cars below $57,581, like Yaris, Corolla, Camry, C-HR and RAV4, may be eligible for a 100% Instant Asset Write-Off if delivered by 31 December 2020.

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 up to $150,000.

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

 

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 depreciable assets that cost less than $150,000. 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 to $150,000

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 12 March 2020 until 31 December 2020

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 economic stimulus packages available, including the threshold increase of instant asset write-offs.

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.

 

$150,000 Instant Asset Write Off

The Government has lifted the instant asset write off threshold to $150,000 (ex GST)

Purchase a new, demonstrator or pre-owned vehicle under $150,000 (ex GST) before 31 December 2020 and you may be eligible for the Federal Government's instant asset write off!

BROWSE PRE-OWNED VEHICLES  BROWSE DEMO VEHICLES

BROWSE NEW VEHICLES

 

Cash Payment for ABN Holders

  • Issued as a refund on BAS and IAS statements up to $50,000 this quarter and a similar payment for July to October

 

 

Income Support Safety Net

  • Information for sole traders, contractors and casuals
  • Accessing your superannuation
  • Cash payments for ABN holders

 Unsecured Loan Scheme

  • Information regarding the loan scheme and interest-free periods
  • Government guarantees 50% of the loan
  • Standard lending criteria applies and loan approval is not guaranteed.

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


* 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.

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