How To Get A 100% Tax Break On Car Lifts

Loyal customers, we want to inform you of the impending ending to a significant and highly beneficial tax-write off incentive from the ATO. 

The Australian Taxation Office (ATO) has a temporary policy in place called “Temporary Full Expensing,” which allows eligible businesses to claim an immediate 100% tax deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose. 

In simple terms, the ATO are currently handing out 100% tax breaks on the purchase of business equipment.

However, this policy is set to end on June 30, 2023. 

Temporary Full Expensing: An Overview

The ATO’s temporary full expensing policy is designed to support businesses and encourage investment by providing tax incentives. Under this policy, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use for a taxable purpose. The following points provide an overview of the eligibility criteria and the types of assets covered:

Eligibility:

• Businesses with an aggregated turnover of less than $5 billion.
• Corporate tax entities that meet the alternative income test.

Eligible Assets:

• New assets first held, first used, or installed ready for use for a taxable purpose between 7.30 pm AEDT on October 6, 2020, and June 30, 2023.
• Second-hand assets meeting specific criteria.
• Improvements incurred between October 6, 2020, and June 30, 2023, to eligible assets.
• Existing assets held before October 6, 2020, which would be eligible assets if not for their holding date.
• Eligible assets of small business entities using the simplified depreciation rules and the balance of their small business pool.

Immediate Tax Benefits:

By purchasing automotive equipment from AAQ before June 30, 2023, you can take advantage of the temporary full expensing policy and claim an immediate deduction for the business portion of the equipment’s cost in the year it is first used. This can result in significant tax savings for your business. 

The temporary full expensing policy implemented by the ATO offers businesses a valuable opportunity to claim immediate deductions for capital equipment purchases. With the June 30 deadline approaching, acting now can save you plenty of $$ in the long run.

Prior to purchasing, we advise you discuss with your accountant or business advisory team to determine if taking advantage of this incentive is appropriate for your business.

If that is the case, contact our team to discuss suitable equipment options for your business ahead of the deadline. Alternatively, browse our range of car hoists, car stackers, car scissor lifts and more in our online shop.

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AAQ is a responsive and reputable seller of car lifts, car stackers, motorcycle stands and all kinds of vehicle hoist and related equipment. Browse our range or contact us today for more information.