Extension granted for instant asset write-off scheme


ATA and HVIA welcome expanded investment opportunity for industry

Extension granted for instant asset write-off scheme
Todd Hacking and Ben Maguire

 

The associations who urged an extension to the instant asset write-off (IAWO) scheme are now rejoicing after their calls were heeded.

The federal government announces today that the $150,000 write-off, applying to new and second-hand assets, will last to the end of the year.

The initiative, which was increased from $30,000 and expanded to more businesses in March, was due to end on June 30.

The extension will enable trucking businesses to invest in safer equipment and support the industry’s suppliers, Australian Trucking Association (ATA) CEO Ben Maguire and Heavy Vehicle Industry Australia (HVIA) CEO Todd Hacking say.


How HVIA and ATA maintained pleas for an extension, here


"The ATA and HVIA made two joint submissions on the instant asset write off to the Treasurer and had detailed discussions with Treasury officials," Maguire says.

"We want to thank the Government for listening to industry’s views and supporting continued investment.

"The write off has already delivered an economic boost. With this six month extension, I urge every trucking operator to consider if they could bring forward their next equipment purchase and take advantage of the tax benefits."

Hacking says the original deadline for the write off had been a problem for heavy vehicle manufacturers and suppliers.

"Many businesses did not have time to act on the increased write off before the pandemic escalated and they had to focus on staying in business," Hacking says.

"In addition, much of the equipment we supply is tailored to an individual purchaser’s specifications. There just wasn’t time to do this before the 30 June deadline.

"Now the industry can engage with our customers and really highlight the advantage of upgrading their equipment.

"This will go a long way to supporting HVIA members not only now but when JobKeeper ends in September."

The decision also receives the backing of the Federal Chamber of Automotive Industries (FCAI).

"The automotive industry in Australia has been in decline for some time," FCAI CEO Tony Weber says.

"As at the end of May 2020, the market had seen 26 consecutive months of negative growth. 

"We need to kick start the new vehicle market by stimulating new vehicle purchases, and the instant asset write-off is an important tool in this process. 

"We would like to see small businesses follow through on their pre-COVID investment strategies, and replace their older vehicles with new, safer, and more efficient models."

 

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