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CMV Truck Centre Offers
The time to buy a new or used truck has never been more your favor with the Federal Government’s new Economic Stimulus Package.
In the 2020-21 Budget, the Federal Government announced further measures to stimulate Australia’s short-term economic recovery by promoting investment in new and pre-owned equipment, while enabling business cash flow
Temporary full expensing of capital assets
The Government announced a temporary measure to allow businesses to claim an immediate deduction for the full cost of eligible capital assets.
Businesses with aggregated annual turnover of less than $5 billion are able to deduct the full cost of eligible capital assets acquired from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2022.
The instant asset write-off gives businesses until 30 June 2021, to first use and install those assets.
This also factors in small businesses using the simplified depreciation pool.
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This also factors in small businesses using the simplified depreciation pool.
The implications the measures and the existing instant asset write-off measure are as follows:
- Businesses with annual aggregated turnover of less than $5 billion will be entitled to an immediate tax deduction for the full cost of new eligible capital assets and improvements to existing eligible assets acquired from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2022.
- Businesses with aggregated turnover of less than $50 million will also be entitled to an immediate tax deduction for the full cost of second-hand assets acquired from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2022.
- Businesses with aggregated annual turnover between $50 million and $500 million can claim an immediate deduction for the full cost of eligible second-hand assets costing less than $150,000 if they are purchased by 31 December 2020 and installed ready for use by 30 June 2021.
- Small businesses with aggregated turnover of less than $10 million can deduct the balance of their simplified depreciation pool at the end of the income year under the new measure.
Find out more about the Federal Government's measures here
| New T909 Purchase Price | 100% Accelerated Depreciation Value | Revised Asset Value for Std Depreciation | Total Depreciation Value | Nominal Company Tax Rate | Net Tax Debt Reduction | |
| Usual Year 1 Tax Calculation | $380,000 | - | - | $57,000 | 27.5% | $15,675 |
| Stimulus Year 1 Tax Calculation | $380,000 | $380,000 | $380,000 | $380,000 | 27.5% | $104,500 |
| Net Tax Gain from Incentive | $88,825 |
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Please note that the information provided is general in nature and all customers must seek their own independent tax advice and accounting advice before making a vehicle purchase. New T909 example in the above table is should be taken as an example only, courtesy of PACCAR Australia.
