Instant Asset Write-off Scheme Extended

ByDean MellorJune 9, 2020
Instant Asset Write-off Scheme Extended

In a move expected to help bolster flagging new-vehicle sales, the Federal Government has extended the $150,000 instant asset write-off scheme for an additional six months.

The Federal Chamber of Automotive Industries (FCAI) has commended the extension of the scheme which now runs through to 31 December 2020, suggesting that the extended timeframe will allow Australian businesses to support their operations through continued investment in business assets during Australia’s post-COVID-19 economic recovery.

Of course, the extension will also be of great benefit to the new-car industry, and the Federal chamber of Automotive Industries (FCAI) had been calling for it for some time.

“The automotive industry in Australia has been in decline for some time,” FCAI Chief Executive Tony Weber said.

Tony Weber

FCAI Chief Executive Mr Tony Weber.

“As at the end of May 2020, the market had seen 26 consecutive months of negative growth. In addition, the market dropped 48.5 per cent in April 2020 (compared to April 2019), and declined another 35.3 per cent in May 2020 (compared to May 2019),” Mr Weber added.

Check out these links to the summaries of Australian new-car sales for April 2020 and May 2020.

“We need to kickstart the new-vehicle market by stimulating new-vehicle purchases, and the instant asset write-off is an important tool in this process,” Mr Weber continued. “We would like to see small businesses follow through on their pre-COVID investment strategies, and replace their older vehicles with new, safer and more efficient models.

“New car dealerships in Australia employ more than 60,000 people nationally and are significant contributors to community and regional economic growth through employment, training and philanthropy.

“It’s great to see the Federal Government’s support for these small businesses through a number of initiatives such as JobSeeker and JobKeeper, and now through the extension of the instant asset write-off program,” Mr Weber concluded.