The Federal Government has announced measures to boost the economy. There are several parts to the stimulus package, two of which directly relate to businesses buying DAF trucks. Now is the time to take advantage and purchase a DAF!
Who is eligible?
Businesses with aggregated turnover of less than $500m.
What does the Government’s Incentive package mean for truck buyers?
1. Increasing the instant asset write-off
Eligible businesses can immediately deduct purchases of eligible assets less than $150,000 from 12 March 2020 until 31 December 2020. The asset threshold applies on a per asset basis, which will enable businesses to immediately write-off multiple assets. The benefit will apply to both new and pre-owned trucks invoiced or installed ready for use before 31 December 2020.
2. Business Investment Incentive
The Business Investment Incentive is a temporary business investment allowance for eligible businesses to purchase new trucks. The new truck needs to have been acquired after 12 March 2020 and first used or installed by 30 June 2021. This will allow businesses an additional 50% accelerated depreciation deduction in the first year.
* This should not be considered as tax advice. Please seek your own independent advice to determine eligibility and talk to your financial advisor. Assets that are eligible include new trucks that can be depreciated under Division 40 of the Income Tax Assessment Act 1997. Normal depreciation schedules apply after year one.