Aug 31st, 2023
EOFY Is Fast Approaching! Why Now Is The Time To Purchase A New Work Vehicle Before June 30
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Are you a small business owner looking to maximise your tax benefits this financial year? Well, you’re in luck because the end of the financial year (EOFY) is fast approaching, and business owners have less than a month remaining to arrange the purchase of a new commercial vehicle and claim the temporary full expensing.
Not only can you take advantage of the current Instant Asset Write-Off Scheme, but you’ll also reap the benefits of bargain buying in the EOFY sales and also avoid potential tax burdens in the future.
Let’s dive into the details and see why now is the time to act!
Take Advantage Of End Of Year Sales
As the end of the financial year approaches, many dealerships and vehicle manufacturers offer enticing deals and discounts to clear their inventory. This means that you can have an excellent opportunity to negotiate a better price, secure attractive finance options or take advantage of additional incentives such as bonus accessories, extended warranties, reduced interest rates or servicing. By taking advantage of these limited-time offers, you can save a substantial amount of money and secure a great deal on your new work vehicle.
One thing to keep in mind, though, is that the current market conditions mean that you should get your order in well before the end of the financial year, due to supply constraints causing extremely long waitlists. This could result in your car not arriving in time for you to write it off for this financial year.
One of the most compelling reasons to purchase a new work vehicle before June 30 is to take advantage of the available tax deductions. The EOFY presents an opportunity for businesses to deduct the full cost of an asset under the Instant Asset Write-Off Scheme providing it is used for business purposes.
However, here’s the catch. The Labour Government’s latest update on the Instant Asset Write-Off Scheme announced in the 2023-24 Budget, means that time is running out to claim substantial deductions for your new work vehicles. From July 1, the claimable amount will drop significantly from $150K to just $20K.
| Existing Scheme | New Scheme |
| Available until 30th June 2023 | Available from 1 July 2023 until 30 June 2024 |
| New and used assets | New and used assets |
| Available for eligible businesses with less than $500 million annual turnover | Available for eligible businesses with less than $10 million annual turnover |
| $150K per asset | Maximum $20k per asset |
Investing in a new work vehicle can significantly enhance your business productivity by providing improved reliability, fuel efficiency and advanced features. Upgrading to a more efficient and modern vehicle with advanced technology and safety features can help streamline your business activities, reduce maintenance costs and increase efficiency.
Competitive Financing Options
With the EOFY approaching, vehicle finance brokers are revving up their engines and offering attractive financing options. This means you can take advantage of competitive interest rates, flexible repayment terms, and other incentives to secure the best possible financing for your new work vehicle.
At Rostron Finance, we have access to more than 50 different specialists in the financial industry, including lenders and insurers. This allows us to offer you the most competitive deals and financing solutions in the market that meet your unique needs and budget requirements.
Remember, time is ticking, and the EOFY finish line is fast approaching. Don’t wait until it’s too late! If you’re a business owner, take advantage of the current scheme and purchase essential business assets worth more than $20K this financial year to avoid high tax burdens in the future. Get behind the wheel of your new work vehicle and accelerate your business’s growth today!
If you’re considering purchasing a new vehicle for your business before EOFY and need financial assistance, give our expert team a call on 1300 70 70 39 for more information on how we can get you started.
