Federal Government Budget 2020 - 2021
Eligible businesses for the Instant Asset Write-Off (IAWO) will include those with an aggregated annual turnover of less than $5 billion (up from $500 million). The IAWO applies to those carrying on a business and can be applied to the full cost of a new vehicle, with no threshold. An immediate tax deduction will be available on delivery for new vehicles delivered between 6 October 2020 and 30 June 2022.
For businesses with an aggregated annual turnover less than $50 million, IAWO will apply to the full cost of all New or Used vehicles, with no threshold (previously $150,000), providing it is purchased within carrying on a business. An immediate tax deduction will be available on delivery for all new and used vehicles delivered between 6 October 2020 and 30 June 2022.
Businesses with an aggregated annual turnover between $50 million and $500 million can still apply the IAWO measures announced in August 2020 with a threshold of $150,000 (excluding GST), towards second-hand vehicles/trucks purchased and delivered by 30 June 2021 (previously 30 December 2020).
Please refer to the following link and seek further independent professional tax advice for your own financial circumstances: https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-Economic-Response-to-Coronavirus/
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