{"id":610,"date":"2020-07-09T05:31:16","date_gmt":"2020-07-09T05:31:16","guid":{"rendered":"http:\/\/www.acandcoaccountants.com.au\/?page_id=610"},"modified":"2020-07-09T16:06:59","modified_gmt":"2020-07-09T16:06:59","slug":"extension-of-the-instant-asset-write-off-and-how-it-applies-to-motor-vehicles","status":"publish","type":"page","link":"http:\/\/www.acandcoaccountants.com.au\/zh\/extension-of-the-instant-asset-write-off-and-how-it-applies-to-motor-vehicles\/","title":{"rendered":"EXTENSION OF THE INSTANT ASSET WRITE OFF AND HOW IT APPLIES TO MOTOR VEHICLES"},"content":{"rendered":"<div data-elementor-type=\"wp-page\" data-elementor-id=\"610\" class=\"elementor elementor-610\" data-elementor-settings=\"[]\">\n\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-element elementor-element-b003bec elementor-section-boxed elementor-section-height-default elementor-section-height-default elementor-section elementor-top-section\" data-id=\"b003bec\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t<div class=\"elementor-element elementor-element-fe2f46c elementor-column elementor-col-100 elementor-top-column\" data-id=\"fe2f46c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap  elementor-element-populated\">\n\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t<div class=\"elementor-element elementor-element-90b193b elementor-absolute elementor-widget elementor-widget-heading\" data-id=\"90b193b\" data-element_type=\"widget\" data-settings=\"{&quot;_position&quot;:&quot;absolute&quot;}\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">\u6700\u65b0\u52a8\u6001<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-element elementor-element-9ea3e3e elementor-section-boxed elementor-section-height-default elementor-section-height-default elementor-section elementor-top-section\" data-id=\"9ea3e3e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t<div class=\"elementor-element elementor-element-41735a9 elementor-column elementor-col-100 elementor-top-column\" data-id=\"41735a9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap  elementor-element-populated\">\n\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ef7c706 elementor-widget elementor-widget-heading\" data-id=\"ef7c706\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">EXTENSION OF THE INSTANT ASSET WRITE OFF AND HOW IT APPLIES TO MOTOR VEHICLES<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-element elementor-element-d397251 elementor-section-boxed elementor-section-height-default elementor-section-height-default elementor-section elementor-top-section\" data-id=\"d397251\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0b9f32d elementor-column elementor-col-50 elementor-top-column\" data-id=\"0b9f32d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap  elementor-element-populated\">\n\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9cc8b28 elementor-view-default elementor-widget elementor-widget-icon\" data-id=\"9cc8b28\" data-element_type=\"widget\" data-widget_type=\"icon.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-icon-wrapper\">\n\t\t\t<div class=\"elementor-icon\">\n\t\t\t<i aria-hidden=\"true\" class=\"far fa-clock\"><\/i>\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5bbacf9 elementor-absolute elementor-widget elementor-widget-text-editor\" data-id=\"5bbacf9\" data-element_type=\"widget\" data-settings=\"{&quot;_position&quot;:&quot;absolute&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p><strong><time class=\"news-meta-item news-meta-date\">10 July 2020<\/time><\/strong><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-10a5a5a elementor-column elementor-col-50 elementor-top-column\" data-id=\"10a5a5a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap\">\n\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-element elementor-element-50176a5 elementor-section-boxed elementor-section-height-default elementor-section-height-default elementor-section elementor-top-section\" data-id=\"50176a5\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t<div class=\"elementor-element elementor-element-284b270 elementor-column elementor-col-100 elementor-top-column\" data-id=\"284b270\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap  elementor-element-populated\">\n\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6e135e2 elementor-widget elementor-widget-text-editor\" data-id=\"6e135e2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\"><p>The Government has announced that it will extend the instant asset write off (IAWO) to 31 December 2020 for asset purchases below $150,000. Businesses with an aggregated turnover of less than $500 million are currently eligible for the write off and it is intended that this announcement will be legislated soon.<\/p><p><strong>IAWO and cars<\/strong><\/p><p>Care must be taken if you intend on using the IAWO for cars.\u00a0 Broadly, under the depreciation provisions, the maximum depreciation you can claim on a car is limited to $57,581 for the 2019-20 financial year.<\/p><p>For example, if you purchase a \u201ccar\u201d for $100,000, the maximum you can claim under the IAWO is $57,581. In addition, the maximum GST you can claim on the purchase is limited to 1\/11<sup>th<\/sup>\u00a0of $57,581 i.e. $5,234.<\/p><p>However not all vehicles are \u201ccars\u201d and certain types of vehicles are not captured by this limit.<\/p><p><strong>What is a car?<\/strong><\/p><p>A car is a vehicle designed to carry\u00a0<\/p><ul><li>less than nine passengers; and<\/li><li>has a payload capacity of less than one tonne.<\/li><\/ul><p>Vehicles that have a payload capacity of more than one tonne (certain utilities, dual cabs etc.) would not fall within the definition of a car and would not be restricted to the limit.\u00a0There is a further exclusion from the limit for certain vehicles which may have a payload capacity of less than one tonne but are not designed to carry passengers. However, it is important that you consider the specifications of the vehicle to ensure this is the case.<\/p><p>The payload capacity is calculated by taking the gross vehicle mass (GVM) and reducing it by the basic kerb weight. These details are normally specified on the compliance plate by the manufacturer.<\/p><p>The ATO provides the following example of how the payload capacity is calculated:<\/p><p>Trades Business XYZ wants to replace a work utility vehicle for their business. They decide to investigate dual cab vehicles. They have narrowed their choice to two options. Both vehicles cost more than the car limit.<\/p><table border=\"1\" cellspacing=\"0\" cellpadding=\"0\"><tbody><tr><td><strong>Manufacturer A: dual cab utility<\/strong><\/td><td><strong>Manufacturer B: dual cab utility<\/strong><\/td><\/tr><tr><td><p>GVM = 2,900 kg<\/p><p>Basic kerb weight = 1,950 kg<\/p><p><strong>Payload capacity = 950 kg<\/strong><\/p><p>The car limit applies to this vehicle as the payload capacity is less than one tonne.<\/p><\/td><td><p>GVM = 3,200 kg<\/p><p>Basic kerb weight = 2,135 kg<\/p><p><strong>Payload capacity = 1,065 kg<\/strong><\/p><p>The car limit does\u00a0<strong>not\u00a0<\/strong>apply to this vehicle as the payload capacity is more than one tonne.<\/p><\/td><\/tr><\/tbody><\/table><p><strong>What else should you look out for?<\/strong><\/p><p>Only businesses are eligible to claim the IAWO and you should consider whether you or the entity in which you are purchasing the asset carries on a business.<\/p><p>In addition, any private use of the vehicle by an employee is subject to FBT and this may lead to a costly outcome for the business if not considered in advance. For example, using the statutory method, the taxable value of a fringe benefit is $20,000 on a\u00a0<em>car<\/em>\u00a0which costs $100,000. This may lead to a fringe benefits tax bill of more than $19,500! However, with some planning, this can be reduced.<\/p><p>Lastly, if you wish to claim a deduction during the June 2020 financial year, you need to have the vehicle delivered and ready for use by 30 June 2020 to claim a deduction this year. If delivered after 1 July 2020 but before 31\u00a0December\u00a02020, it may be deductible next year (pending finalisation of the legislation for the extension).<\/p><p><b>Contact your AC &amp; Co Accountants specialist if you wish to discuss this in further detail.<\/b><\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-50d0619 elementor-button-info elementor-align-left elementor-widget elementor-widget-button\" data-id=\"50d0619\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a href=\"http:\/\/www.acandcoaccountants.com.au\/zh\/information-centre\/\" class=\"elementor-button-link elementor-button elementor-size-xs\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-icon elementor-align-icon-left\">\n\t\t\t\t<i aria-hidden=\"true\" class=\"far fa-arrow-alt-circle-left\"><\/i>\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"elementor-button-text\"> \u56de\u5230\u6700\u65b0\u52a8\u6001\u4e3b\u9875<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2b7a12d elementor-widget elementor-widget-spacer\" data-id=\"2b7a12d\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e109b41 elementor-button-warning elementor-align-right elementor-absolute elementor-widget elementor-widget-button\" data-id=\"e109b41\" data-element_type=\"widget\" data-settings=\"{&quot;_position&quot;:&quot;absolute&quot;}\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a href=\"http:\/\/www.acandcoaccountants.com.au\/zh\/contact-us\/\" class=\"elementor-button-link elementor-button elementor-size-xs\" role=\"button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">\u8054\u7cfb\u6211\u4eec<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Information Centre EXTENSION OF THE INSTANT ASSET WRITE OFF AND HOW IT APPLIES TO MOTOR VEHICLES 10 July 2020 The Government has announced that it will extend the instant asset write off (IAWO) to 31 December 2020 for asset purchases below $150,000. Businesses with an aggregated turnover of less than $500 million are currently eligible&hellip;&nbsp;<a href=\"http:\/\/www.acandcoaccountants.com.au\/zh\/extension-of-the-instant-asset-write-off-and-how-it-applies-to-motor-vehicles\/\" class=\"\" rel=\"bookmark\">\u9605\u8bfb\u66f4\u591a &raquo;<span class=\"screen-reader-text\">EXTENSION OF THE INSTANT ASSET WRITE OFF AND HOW IT APPLIES TO MOTOR VEHICLES<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-templates\/template-pagebuilder-full-width.php","meta":{"footnotes":""},"_links":{"self":[{"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/pages\/610"}],"collection":[{"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/comments?post=610"}],"version-history":[{"count":5,"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/pages\/610\/revisions"}],"predecessor-version":[{"id":749,"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/pages\/610\/revisions\/749"}],"wp:attachment":[{"href":"http:\/\/www.acandcoaccountants.com.au\/zh\/wp-json\/wp\/v2\/media?parent=610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}