If you’ve been looking to upgrade your trailer fleet with The Drake Group, a recent Federal Budget move may spell good news for your future trailer or low loader purchase.
At the end of FY21, the Australian Government announced the expansion and extension of the Instant Asset Write-Off Scheme (IAWO).
How does the IAWO affect the upgrade or purchase of general transport, heavy haulage and special purpose trailers?
The IAWO incentivises businesses to immediately deduct the cost of a depreciating asset in the year of acquisition rather than over its effective economic life.
Put simply, the IAWO reduces the usual time given for an asset to be expensed through a company’s accounts, which means businesses see the tax benefits faster.
The IAWO was originally set to expire in June 2022, but it is now to be extended until June 2023.
As a way to respond to the wide-reaching effects of COVID-19 on small business, the government has also confirmed for new assets, the uncapped value will remain. Can we get an IA-WOW!
For businesses with an aggregated turnover under $5 billion, temporary full expensing of a purchased business asset is available for all new assets acquired and in service on or before June 30 2022 and 2023.
For entities with a turnover under $50 million, investment in second-hand assets may also be eligible for full expensing.
Let’s look at how the IAWO affects your next trailer purchase:
Say for example you’re looking to buy a new general transport, heavy haulage or special purpose trailer and you’ve got your heart set on one of The Drake Group’s quality products, at a cost of $400,000 (exc. GST).
In your next tax return, you can claim an upfront deduction of $400,000 if you meet the IAWO eligibility criteria.
Although – keep in mind – this is just an estimate. It’s best to talk to a finance or taxation expert to check what you’re eligible to claim.
Want to talk incentives, loans, trailer purchases and fleet upgrades?
Our friendly and experienced sales team at The Drake Group will help you make the right choice for your trailer fleet upgrade.
We’d be happy to put you in touch with one of our qualified finance partners to talk loans and incentives, and help you work out what tax benefits you may be entitled to.
Matt Crain has the expertise to ensure you get the best equipment finance loan in the marketplace, and he is in regular communication with banks and lenders, staying across their changing requirements and any business relief packages.
Contact us at any time: PH: 07 3271 5888 Email: sales@thedrakegroup.com.au
