Take advantage of the EOFY instant asset write-off.

Take advantage of the EOFY instant asset write-off.

01 June, 2020

EOFY measure supports business investment.

Buy a car before 30 June 2020 for cash flow benefits.

Did you know that buying a car before the end of financial year (EOFY) means you benefit from a new COVID-19 measure increasing the instant asset write-off (IAWO)?

With the 30 June 2020 cut-off date fast approaching, now is the time to buy a brand new or pre-owned Hyundai for your business and take advantage of this limited-time opportunity.

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What is the instant asset write-off measure?

As part of its economic response to the coronavirus, the Australian Government is delivering support for business investment by increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000.

The Government is also expanding access so that more businesses can take advantage of the IAWO. The annual turnover threshold for businesses is increasing from $50 million to $500 million until 30 June 2020.

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Why is the IAWO being increased?

Essentially, the Australian Government is looking to reinvigorate the economy and help it recover from the unprecedented impact of COVID-19 by ‘backing Australian businesses to invest’. In 2017-18, more than 360,000 businesses benefited from the current IAWO, claiming deductions to the value of over $4 billion.

The updated IAWO business investment measure is designed to assist businesses and stimulate economic growth in the short-term, as well as encourage a stronger economic recovery following the coronavirus outbreak. Expanding the threshold will mean an additional 5,300 businesses who employ around 1.9 million Australians will be able to access the IAWO for the first time. The Government estimates this measure will lower taxes paid by Australian businesses by $2.5 billion over the next two years.

How can your business benefit?

The higher IAWO threshold has the potential to deliver a timely boost for your business. It provides cash flow benefits for a business that can immediately deduct purchases of eligible assets each costing less than $150,000 – for example, a new or pre-owned vehicle to help your human assets do their jobs more efficiently. Access to a work car as part of an employment contract could even be a valuable incentive if you’re looking to keep or hire an important team member.

It’s also worth noting that the IAWO threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets. Whether you need a small car, a truck or a fleet of vehicles, this could be the EOFY opportunity you’ve been waiting for.

The Government’s proposal applies from announcement until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe. Remember, the IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.

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Hyundai EOFY – See it to believe it!

If the increased IAWO has got you thinking about buying a new or pre-owned business vehicle before the end of June, you’ll be even more excited to discover the superb savings available through Hyundai’s EOFY offers on a range of popular Hyundai models, including a great EOFY Bonus offer on the Hyundai Tucson Active X.

At this time you might also consider making the most of Hyundai Finance™ – an alliance between Hyundai Motor Company Australia and St. George Bank. Hyundai Finance offers a range of vehicle finance solutions for private or business use.

Take a look at the Hyundai Finance Loan Calculator or contact your local dealer to find out more.

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Disclaimer: Please seek your own professional advice regarding tax incentives. Neither Hyundai or Hyundai dealers make any representation or warranty with respect to the applicability of any taxation incentives to any purchaser.