The Australian Taxation Office (ATO) introduced the Temporary Full Expensing Program in 2020 as part of the Australian Government’s COVID-19 economic recovery plan. The program allows businesses to claim an immediate deduction for the full cost of eligible depreciating assets, including trucks and other heavy vehicles. This program has given a significant boost to the Australian truck manufacturing industry.
Here are some fast facts you need to know about the Temporary Full Expensing program of the Australian Taxation Office:
What is Temporary Full Expensing?
The program allows businesses to claim an immediate deduction for the full cost of eligible depreciating assets, including trucks and other heavy vehicles. For eligible businesses, the program completely removes the $150,000 cost limit on the individual asset.
Is my business eligible for it?
Your business is eligible if it’s with an aggregated turnover of less than $5 billion. Your business is a corporate tax entity that meets the alternative income test. According to ATO, for the 2022-23 income year: “an eligible entity can claim in its tax return a deduction for the business portion of the cost of assets”.
What is the period covered by the program?
ATO states “eligible new assets first held, used, or installed ready for use for taxable purposes between 7:30pm AEDT on October 6, 2020, and June 30, 2023.”
The ATO website provides information on the program’s eligibility criteria, including the threshold amount and the types of assets that are eligible for the program. According to the ATO, businesses with an aggregated turnover of less than $5 billion are eligible for the program. The program applies to new assets that are first used or installed and ready for use between October 6, 2020, and June 30, 2023.
To be eligible for the program, businesses must have an aggregated turnover of less than $5 billion. The program applies to new assets first used or installed ready between the covered period. Eligible assets include trucks, trailers, and other heavy vehicles, as well as other types of equipment and machinery.
Overall, the Temporary Full Expensing Program has been a significant boost to the Australian truck manufacturing industry. By encouraging businesses to invest in new trucks and other heavy vehicles, the program has helped to increase demand and revenue for several businesses, including the truck manufacturing industry.
STG, as a prominent player in the truck manufacturing industry, recognises the benefits of this program. It encourages businesses to invest in new trucks and heavy vehicles, stimulating growth and contributing to the industry’s success.
At STG, we understand the importance of staying ahead of the game and maximising your business’s potential. With our extensive range of high-quality trucks, heavy vehicles, and world-class parts, we have the trucking solutions to meet your specific needs. Whether you require reliable transport for construction, mining, waste management, or any other industry, our state-of-the-art vehicles deliver exceptional performance, efficiency, and durability.
By acting now, you can secure the following benefits before the program ends:
- Immediate Deductions: Claim the full cost of eligible assets without any cost limit, helping you maximise your tax savings.
- Upgraded Fleet: Enhance your operations with our cutting-edge trucks and heavy vehicles, designed to meet the toughest industry standards.
- Increased Productivity: Experience improved efficiency and reliability, allowing you to take on more projects and drive business growth.
- Competitive Advantage: Stay ahead of the competition with the latest technology and innovative features that our vehicles offer.
To ensure you don’t miss out on this limited-time opportunity, we urge you to contact our dedicated sales team at (07) 4517 2062 or firstname.lastname@example.org today. Our experts will guide you through the process, help you choose the right vehicles for your business, and provide a customised quote tailored to your requirements.
Secure your spot today before the Temporary Full Expensing Program comes to an end on June 30, 2023.