The utes you can buy before instant tax write off cut off

Tradies and business owners are scrambling to get their hands on vehicles before a lucrative tax break ends. These are the ones you can get last minute.

Mazda is one of the few brands that can deliver a new ute before the June 30 cut-off. Picture: Richard Dobson

Dealers are bracing for a rush on utes this weekend as lucrative tax incentives for company vehicles end on June 30. 

The popular instant asset write-off program put thousands of dollars straight back into the pockets of Aussie business owners, encouraging them to invest in new equipment worth up to $150,000 and claim part of the cost back with an accelerated depreciation scheme.

The Covid-era incentive ends next Friday, making this weekend the last opportunity for customers to snap up a deal on a new ute.

Manufacturers say demand has been strong throughout June, with dealers reporting that people are walking in off the street asking to have the keys to a new ute before the cut-off.

Car companies reported increased interest in utes after changes to the scheme were introduced in the federal budget. 

Phil Diab of Rockdale Mazda said they have plenty of BT-50 utes ready to deliver before the June 30 cut off. Picture: Richard Dobson

Mazda notched up record sales for its BT-50 ute in May, when the Toyota HiLux and Ford Ranger utes were Australia’s best-selling cars.

Phil Diab, dealer principal for Rockdale Mazda in Sydney, said demand “has been very strong”.

“We’ve had people walk in and say I need to have it done by the end of the financial year,” Mr Diab said.

After-sales specialist Jona Aleishe said the dealership has plenty of BT-50 utes in stock ready for delivery before the cut-off.

The instant asset tax write off is getting reduced from $150,000 to $20,000 from July 1, meaning all utes are no longer eligible.

James Voortman, chief executive of the Australian Automotive Dealer Association, said businesses have until next Friday to put vehicles to work to take advantage of the incentives.

“It’s incredibly important that the asset is in use before the end of the financial year, so the best thing to do is inquire at multiple dealers to find cars in stock to make sure you don’t miss out,” he said.

The car industry has struggled to maintain a steady supply of new cars.

Many popular models have waiting lists in excess of 12 months.

The AADA and other groups have asked Treasury to extend the June 30 deadline for businesses that have ordered new cars that were not delivered in time.

Component shortages, shipping delays and customs holdups have prevented many motorists from receiving cars before the end of the year.

Ford has stock on the ground of some of the cheapest Ranger variants.

“We’re really hopeful of a late result for businesses that have ordered vehicles but not taken delivery,” Mr Voortman said.

Treasury has been contacted for comment.

Geoff Gwilym, chief executive of the Victorian Automobile Chamber of Commerce and interim chief executive of the Motor Trades Association of Australia, said the end of temporary full expensing will bruise the car industry.

“Tradies and dealers alike will really feel this one,” Mr Gwilym said.

“These adjustments essentially make it impossible for businesses to instantly claim the cost of a new commercial vehicle as a tax deduction. 

“Why slam the brakes on initiatives that encourage people to get out there, drive their business forward and put money back into our community?

“During these challenging times, I would have thought economic growth was the number one priority.”

Most utes have long wait times.

Some car brands have stock on the ground today.

A Ford spokesman said while stock may vary from dealer to dealer lower grade Ranger XL, XLS and XLT are likely to be available without an extended wait.

In demand fully loaded versions had longer wait times.

“Ranger Raptor and Ranger Wildtrak V6 would likely be delivered in mid-2024, while Ranger Platinum would be later in 2024,” said Ford.

Nissan and Isuzu both reported strong inquires for their Navara and D-Max utes over the past few months and urged potential customers to contact their local dealer to see if stock was available.

Originally published as The utes you can buy before instant tax write off cut off