March 24, 2020

$150k Instant Asset Write Off & 50% Instant Depreciation Deduction on over $150k Assets – Fact Sheet

Below are some quick facts to help understand what is available to businesses via the Economic Stimulus Package. BOTH initiatives shown below are available to ALL businesses with an annual turnover of less than $500million.

Incentive 1: $150,000 Instant Asset Write Off

1. Vehicles with a purchase price of $150,000 or less (excluding GST) acquired from March 12th to June 30th 2020

2. The Vehicle can be NEW or USED

3. The $150,000 limit is available for individual assets and therefore multiple assets (totalling more than $150,000) can be claimed

4. There is NO LIMIT to the number of assets acquired under this initiative

5. Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative)

6. This initiative is ONLY available until June 30 2020

Incentive 2: 50% Instant Depreciation Write Off (on assets over $150,000)

1. Vehicles with a purchase price GREATER THAN $150,000 (excluding GST) acquired from March 12th to June 30th 2021

2. Assets MUST be NEW

3. There is NO LIMIT to the number of assets acquired

4. Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative)

5. This initiative is available until June 30 2021

6. This extended initiative will also be applicable to assets of $150,000 or less for an extra year once the $150,000 Instant Asset Write Off has expired on June 30 2020.

For more info, visit the Government Fact sheet link below:

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Support_for_business_investment.pdf

The team at Berwick Mazda is well resourced and ready to assist to put in place any finance approvals which may be needed to take advantage of the significant tax breaks available under these programs.

For more information please contact Matthew or Rikki from our Finance Team on 03 8796 6222 or visit our Dealership at 3 Prestige Place, Narre Warren 3805 (2 minutes from Fountain Gate, Bunjil Place and Monash Fwy). For our Used Car Yard, contact 03 5922 4004 or visit Yard #1 Car Megamart, Cnr Commercial Drive & South East Boulevard, Pakenham 3810.

LMCT 7254