Tradie Business: Instant Asset Write-Offs That You May Have Missed In 2020

Tradie Business: Instant Asset Write-Offs That You May Have Missed In 2020

Australian Tradies, you may be able to claim over $50,000 off your work vehicle using the instant asset write-off – but you have to act before the end of December. 

As November ticks down, the end date of the Australian Government’s Instant Asset Write-Off extension comes closer. In response to COVID-19, the 2019-2020 financial year’s instant asset write-off threshold was increased to $150,000 from $30,000.

The eligible businesses restrictions were also eased. Now businesses with an aggregated turnover of less than $500 million can claim these asset-write offs. Before the extension, the limit was an aggregated turnover of $50 million. 

This means you or your workers could be entitled to massive returns on their equipment and vehicles. So, if you’ve experienced a breakdown, or are looking for an upgrade, this is a perfect opportunity to save money. 

Before you read on, here’s a list of objects you can claim using the instant asset write-off: 

  • Drills
  • Electric sanders
  • Electric saws
  • Grinders
  • Leaf blowers
  • Lawnmowers
  • Nail guns
  • Ladders
  • Toolboxes
  • Work lights
  • High-pressure water cleaners
  • Concrete mixers
  • Computers, laptops and tablets

So the big question is ‘What can I use it on?’ Well, the answer is pretty much anything listed above, but there are limits placed on car purchases. 

The car limit applies to a vehicle designed to carry less than a tonne, and fewer than nine passengers. Essentially, you will only be able to claim $57,581 for the 2019-20 income year and $59,136 for the 2020-21 income year. 

The limit does not apply to motorcycles or similar vehicles, or vehicles fitted out for use by people living with a disability. Trucks, utes and other vehicles designed to carry more than a one-tonne load are eligible to claim the full price ($150,00) on the instant asset write-off. 

The CarAdvice team have done a great job at breaking down the intricacies of the plan: Read more here! 

Also, check the Australian Government’s website here so you’re certain on what you can claim. 

Get in soon because from 1 January 2021, the instant asset write-off eligibility will drop significantly, as only small businesses with an aggregated turnover of less than $10 million will be eligible for a $1,000 threshold.

You can claim a range of Austates products on the instant asset write-off. Have a look at our product range and install your vehicle with a custom spray system, or with pest and weed equipment before the new year.