www.commbank.com.au Open in urlscan Pro
184.51.97.43  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to main content Skip to log on Skip to search Accessibility at CommBank
   
 * 
 * Banking
 * Home loans
 * Insurance
 * Investing & super
 * Business
 * Institutional

 * 
 * Log on


 * NetBank log on
 * CommBiz log on
 * CommSec log on

 * Banking
 * Home loans
 * Insurance
 * Investing & super
 * Business
 * Institutional

   --------------------------------------------------------------------------------

 * Locate us
 * Help & support


CommBank Search. Dialog start.
Search CommBank. Type search term then press Enter.




POPULAR SEARCHES

 * Travel insurance

 * Foreign exchange calculator

 * Discharge/ Refinance authority form

 * Activate a CommBank card

 * Cardless cash

 * Interest rates & fees

 * Help & support

 * Locate us

 * Contact us


INSTANT ASSET WRITE-OFF 2020-22

The Government has announced that the write-off available to 99% of businesses
will be extended to 30 June 20231

Here's how you could buy the equipment your business needs and access cash flow
benefits from instant asset write offs.2

 * Instant asset write-off
 * Case studies
 * How you can benefit
 * Finance options & eligibility
 * Apply for finance

Fast online quote
Instant asset write-off


INSTANT ASSET WRITE-OFF


 * WHAT IS THE INSTANT ASSET WRITE-OFF?
   
    * The instant asset write-off allows eligible businesses to claim an
      immediate deduction for certain costs relating to depreciating assets.3
    * The Federal Budget 2020-21 introduced temporary measures that have built
      on the instant asset write-off previously in place.
    * On 11 May 2021, as part of the Federal Budget 2021-22, the Government
      announced an extension of the Instant Asset Write Off by one year to 30
      June 2023.2


 * HOW IT WORKS
   
   
    * Businesses with an aggregated turnover of up to $5 billion may be
      eligible.
      
    * Depreciating assets may include new business vehicles and equipment. For
      businesses with aggregated turnover of less than $50 million, the assets
      can be second-hand.
    * Businesses with aggregated turnover between $50 million and $500
      million may be eligible to deduct the full cost of eligible second-hand
      assets costing less than $150,000 that are purchased by 31 December 2020
      and first used or installed by 30 June 2021.
    * Deduction claims may be made for the year in which the equipment is used
      or installed ready for use. This may be the same year in which you finance
      the equipment.
      
    * You may be able to borrow funds to purchase equipment and still claim a
      deduction for the cost of eligible items.
    * Generally, depreciating assets must be acquired after 7:30pm AEDT on 6
      October 2020 and installed ready for use by 30 June 2022 (which will be
      extended to 30 June 2023 if the announced changes are enacted).
    * For detailed information on the measures visit the ATO website.
    * An alternative income test applies which requires businesses to have less
      than $5 billion in statutory and ordinary income (generally income
      assessable in Australia) in either the 2018-19 or 2019–20 income year AND
      have invested more than $100 million in tangible depreciating assets in
      the period 2016-17 to 2018-19. This change will mean businesses with an
      aggregated turnover of more than $5 billion due to the income of an
      overseas parent or associate will now be able to qualify provided they
      meet the 'alternative income test'. For detailed information relating to
      the alternative income test visit the ATO website.


 * WHAT YOUR BUSINESS COULD NOW CLAIM
   
    * Unlimited number of new eligible assets of any dollar value (and eligible
      asset improvements for new and existing assets), if your business has an
      aggregated annual turnover of less than $5 billion.
    * If your business has an aggregated turnover of less than $50 million, the
      full cost of all eligible second-hand assets may also be claimed.

Case studies


CASE STUDIES



All amounts, rates and calculations shown are examples only and are not
necessarily complete or accurate. You'll need to seek your own tax and financial
advice. 




DAVE'S CARPENTRY BUSINESS

Dave owns a carpentry business with a turnover of $9 million.


In late October 2020, he decides to upgrade one of his work trucks and his
factory lathe machinery.


Dave spends $100,000 on a new truck and $240,000 on second-hand lathe equipment.


In preparing his tax return for the year ending 30 June 2021, Dave should be
entitled to claim $340,000 as an immediate tax deduction for that financial
year.





EMMA'S CONSTRUCTION BUSINESS

Emma is the CFO of a construction business with a turnover of $40 million.


In late October 2020, she decides to buy 10 new excavators and 8 second-hand
bulldozers. 


The business spends $350,000 on each of the new excavators (which includes
$50,000 on improvements for each) and $100,000 on each second-hand bulldozer.

In preparing the business' tax return for the year ending 30 June 2021, the
business should be entitled to claim $350,000 for each new excavator as an
immediate tax deduction. As the business' aggregated annual turnover is less
than $50 million, it could also claim the 8 second-hand bulldozers adding an
additional $800,000 immediate deduction. 




How you can benefit


BORROW AND STILL CLAIM THE WRITE-OFF

If you use financing to purchase the asset (such as an equipment loan), you may
still be entitled to claim the immediate deduction.3

Here are three benefits to consider: 


1. HOLD ON TO YOUR CASH

 * Borrow using the equipment you purchase as security
 * No deposit required 
 * No monthly fees


2. TAKE ADVANTAGE OF LOW INTEREST RATES

More about these rates


3. BENEFIT FROM FLEXIBILITY

 * Payments can be structured to your business’ cash flow
 * You can lower repayments by structuring a balloon/residual payment at the end
   of a 2-5 year payment period




GET A QUOTE IN LESS THAN 60 SECONDS

See how you could benefit4

Start quote

Finance options & eligibility


WHO CAN APPLY FOR FINANCE?


 * YOU CAN APPLY IF YOUR BUSINESS HAS: 
   
    * Traded for more than 12 months
    * A good credit rating 
    * Not undergone or undergoing bankruptcy
    * Other existing accounts in good standing with the Bank


 * TO APPLY, YOU'LL NEED TO BE:
   
    * Financing equipment that will be used by a business
      
    * An individual, sole trader, sole owner of your company or someone
      authorised to apply for finance and credit for a business
    * Aged 18 years or over
    * Eligible to work in Australia

Apply for finance


APPLY IN FOUR EASY STEPS



Our Equipment Finance team can talk to you over the phone, online or meet you in
person at a time that suits you.



Fast online quote

Call 1800 ASSETS 8am - 7pm AEST


GET A QUOTE ONLINE

We’ll give you a breakdown of the costs and interest. We'll need to know:

 * What you want to finance
 * How old it is
 * The finance amount




SIMPLE APPLICATION

Eligible CommBank customers can receive a conditional credit decision4 online
(otherwise we'll call you to process your application).




SIGN YOUR DOCUMENTS ONLINE

When your application is approved you can sign your finance agreement online,
using our SmartSign paperless technology.




GET FUNDING WITHIN FOUR HOURS OF SIGNING

Leave the rest with us and we’ll transfer the money to your supplier within four
hours of you signing your agreement online.




WE CAN HELP


 * CALL 1800 277 387 (1800 ASSETS)
   
   8am-7pm, Mon-Fri (Sydney/Melbourne time). For any other queries call 13 1998

 * Find your nearest business banker

 * Your questions answered


THINGS YOU SHOULD KNOW


 * This information is current as at 28 May 2021, and is for general information
   purposes only. It has been prepared without considering your objectives,
   financial or tax situation or needs. You should consider the appropriateness
   of this information to your circumstances before acting on it.
   
   Credit provided by the Commonwealth Bank of Australia. These products are
   only available to approved business customers and for business purposes only.
   Applications for finance are subject to the Bank's eligibility and
   suitability criteria and normal credit approval processes. Individuals should
   view our current Terms and Conditions for Asset Finance and consider them
   before making any decision about these products. Rates are subject to
   change.  

 * 1Source: budget.gov.au/2021-22/content/jobs.htm#three
   
   2Tax law is subject to change. At the time of writing, legislation enacting
   this change is yet to be introduced into parliament. For the latest
   information, please check the ATO website. Commonwealth Bank is not a
   registered tax (financial) adviser under the Tax Agent Services Act 2009 and
   you should seek tax advice from a registered tax (financial) adviser.
   
   3This is provided it is depreciable under Division 40 of the Income Tax
   Assessment Act 1997, is acquired and first used by the relevant dates. For
   more information, visit the ATO website. 
   
   
   4 You can apply for conditional approval in NetBank if you’re an existing
   CommBank business customer who is a sole trader or the single director of a
   company that has been operating for at least 12 months. Fees, charges, terms,
   conditions and lending criteria apply.



Back to top

QUICK LINKS

 * Security & scams
 * Help & support
 * Financial assistance
 * Complaints & compliments
 * Payment services availability

ABOUT US

 * About CommBank
 * Careers at CommBank
 * Sustainability
 * Newsroom
 * Investor centre

IMPORTANT INFORMATION

 * Accessibility
 * Important documents
 * Banking Code of Practice
 * Cookies policy
 * Privacy statement

FOLLOW US

 * Twitter
 * Facebook
 * LinkedIn
 * YouTube
 * Instagram

 

CommBank acknowledges the Traditional Owners of the lands across Australia as
the continuing custodians of Country and Culture. We pay our respect to First
Nations peoples and their Elders, past and present.

 



©2023 Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian
credit licence 234945

Commonwealth Bank