1. 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 installed and ready for use by 30 June 2020.

However, current Australian taxation legislation provides that the depreciation limit for a motor vehicle defined as a car* is up to $57,581.

*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.

2. 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.

For example, this means that cars below $57,581; like Yaris, Corolla, Camry, C-HR & RAV4 may be eligible for a 100% Instant Asset Write-Off if delivered by 1 July 2020. Vehicles above 1 tonne carrying capacity, 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.