Opinion

Take advantage of tax breaks for your business

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As a former operator myself, we all know there has been two speeds in the transport industry during this pandemic.

Some operators are flat out meeting pent up demand in the economy, and some business have trucks parked up.

However, with the significant tax concessions in the budget through time limited tax measures this will help business bounce back. The incentives are about backing business through this uncertain time to retool their operations or refresh their fleet.

Under our Lower Taxes Plan in this year’s federal budget there are a range of measures which will support Australian transport businesses.

An estimated 3.5 million businesses across Australia, will be able to deduct the full cost of an eligible asset in the year they are first used or installed ready for use through Temporary Full Expensing.

Our transport businesses require a high capital investment to get started and ongoing investment to stay profitable. These measures will be a massive boost for any operator by significantly reducing their tax liability when purchasing new equipment, like a new truck and trailer.

The Temporary Full Expensing measure became available on 6th October 2020, and will remain active until the end of June 2022, with no limit on the value of the assets.

As part of the 2020–21 Budget, the government announced that it will target support to businesses and encourage new investment through a loss carry back
regime.

Eligible businesses that previously paid company tax in a relevant year and have subsequently made taxable losses can claim a refundable tax offset up to the amount of their previous income tax liabilities.

This will allow new investment to generate significant tax losses which can then be carried back to generate cash refunds for an estimated 1 million companies that employ 8.8 million workers.

It will provide the business with a needed cash flow boost to keep their business running, retain their workers and invest with confidence in the future.

We want the transport industry to know that Federal Government has your back.

Australians should be very proud of how the transport and logistics sector has constantly overcome the challenges.

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