Commercial vehicle tax rebate

Submitted: Saturday, May 02, 2009 at 07:26
ThreadID: 68437 Views:6136 Replies:8 FollowUps:2
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Would someone fill me in on the details for the 30% tax rebate on commercial vehicles bought for primary production? Was this a discussion or actually on offer?
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Reply By: Best Off Road - Saturday, May 02, 2009 at 07:49

Saturday, May 02, 2009 at 07:49
T,

I don't think it is just for primary ptoducers. I was talking to a Plumber who told me he got it.

Cheers,

Jim.

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Follow Up By: fisho64 - Saturday, May 02, 2009 at 10:17

Saturday, May 02, 2009 at 10:17
I thought you couldnt get it til end of tax year when you put in a return?
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Reply By: Member - John (Vic) - Saturday, May 02, 2009 at 07:56

Saturday, May 02, 2009 at 07:56
Look Here and all will be revealed.

Google is your friend.

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Reply By: Muddie - Saturday, May 02, 2009 at 08:23

Saturday, May 02, 2009 at 08:23
The legislation has not yet passed through parliament and could go the way of the Alcopops.
With the corporate tax rate at 30% , 30% of that is really only a 9% saving.
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Reply By: fisho64 - Saturday, May 02, 2009 at 10:16

Saturday, May 02, 2009 at 10:16
this is probably not the best place for tax advice-does your accountant not know anything about it?
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Follow Up By: Twinkles - Saturday, May 02, 2009 at 15:52

Saturday, May 02, 2009 at 15:52
I will ask her. Rang her, but too impatient to wait til I get a reply.
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Reply By: _gmd_pps - Saturday, May 02, 2009 at 10:37

Saturday, May 02, 2009 at 10:37
this is only relevant if you are not a small business or did not have chosen the pooled depreciation. Vehicles fall under short life pool with 30% depreciation where for example generators are classified as 25 years and above lifespan fall in the long term pool and depreciate with 5%. As far as I know this is only interesting for long term investments for small business. If your short life investments are pooled you would not have any advantage. But I am not an accountant. My truck is depreciated with 30% last financial year so are computers and other short term items. Everything up to $1000 is depreciated 100%, so it makes sense when you buy a vehicle to not include extras in your purchase price. Buy them seperately and have invoices under $1000.
good luck
gmd
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Reply By: Motherhen - Saturday, May 02, 2009 at 14:54

Saturday, May 02, 2009 at 14:54
Also: It is on NEW equipment only. A sort of wishy washy stimulus package.


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Reply By: Stu-k - Saturday, May 02, 2009 at 17:45

Saturday, May 02, 2009 at 17:45
I talked to my accountant about it and he said its rubbish and will save you nothing.
Allows you to depreciate your vehicle 30% in the first year but then less over the remaining years, same cost in the long run.

Unless there is some other 30% deal going????
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Reply By: Member - John (Vic) - Saturday, May 02, 2009 at 19:12

Saturday, May 02, 2009 at 19:12
It seems no one bothers to read the ATO link I put in place above.

Its an additional 30% in the first year.

Under the Simplified Tax System (STS) you can only claim 15% with new equipment added to the pool in normal circumstances in the first year the asset is added to the pool then are expensed at 30% per year there after, this change will allow you to depreciate the asset by an additional 30% in the first year, meaning a 15% depreciation expense claim on new equipment plus the 30% Investment Allowance so 45% in the first year if purchased before 30th June 2009 and meeting the other turnover etc requirements.

Its designed to try and encourage business to buy new plant and equipment by giving them a larger expense claim on the item in the first year.
It will only be effective in the first year and the subsequent years will be at the normal STS 30% limits.

It applies to ALL equipment not just motor vehicles.

As always you should seek appropriate advise from you own tax adviser.accountant.


From the above link to the ATO site.

The tax break, in the form of an investment allowance will provide:

an additional tax deduction of 30 per cent of the cost of eligible new depreciating assets acquired under a contract, or started to be constructed, after 12.01am AEDT 13 December 2008 and before the end of June 2009 and installed ready for use by the end of June 2010.
an additional tax deduction of 10 per cent of the cost of eligible new depreciating assets acquired under a contract, or started to be constructed, between 1 July 2009 and 31 December 2009 and installed ready for use by the end of December 2010.
New expenditure on existing assets may also qualify.

For both periods, small businesses will be able to claim the deduction for eligible assets costing $1,000 or more. Small businesses must have a turnover of less than $2 million a year to qualify.

For other businesses, a minimum expenditure threshold of $10,000 applies.

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