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 the 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 this 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 and 31 December 2020
There is an Instant Asset Write-Off available on every vehicle in the Toyota range. Ask you 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.