Features

There has never been a better time to upgrade

If your business is eligible for the current government tax incentives, there has never been a better time to upgrade. 

A positive cash flow within your transport business is important to maintain healthy growth. This can be rather tricky because you need to purchase large essential assets and equipment for your business.

However, buying a new or used truck has never been less taxing with the Federal Government’s Economic Stimulus Packages.

The temporary full expensing plan will apply to new depreciable assets and the cost of improvements to existing eligible assets, allowing businesses to claim an immediate deduction of the full value of all new, eligible, depreciable assets of any value that are first used or installed before June 30, 2023. 

The scheme is essentially a greatly expanded accelerated depreciation program that allows businesses to claim a tax deduction for the full value of the purchase after its use, rather than claim depreciation amounts over several years.

Morris Finance have outlined this example to illustrate just how useful the scheme can be to transport operators: 

Greg owns a transport company, Greg’s Transport Pty Ltd, which has an aggregated annual turnover of $20 million for the 2021-22 income year.

Greg’s Transport Pty Ltd purchases a second-hand Kenworth prime mover for $150,000 exclusive of GST on 1 July 2021.

Under temporary full expensing, Greg’s Transport Pty Ltd will be able to claim a deduction of $150,000 for the full cost of the Prime Mover in 2021–22.

Paying less tax will improve the company’s cash flow and help Greg reinvest and grow his business.

Being able to write-off assets purchased is all well and good, but if you don’t have access to the funds to purchase them, then the scheme won’t be of much use to your business.

Morris Finance are one of Australia’s leading national finance companies, providing asset finance, investment, leasing and insurance services to ABN Holders; Registered Companies; Individuals and Sole Traders.

Australian owned and with over 23 years industry experience the company has a proven track record in asset and equipment finance comprising of a passionate team of experienced professionals.

For more information call 1300 4 Morris and speak to one of our Finance Specialists or email info@morrisfinance.com.au, and the team will be able to assist you in finding the best facility for your needs and budget.

Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *

©2021 All Rights Reserved. Big Rigs is a registered trademark of Prime Creative Media.

JOIN OUR NEWSLETTER

JOIN OUR NEWSLETTER
Close