How to beat the June 30 asset write-off deadline

Changes to tax breaks for business vehicles will put a lot of pressure on the car market heading into the end of the financial year, but there are ways to get around it.

Tradies hoping to snap up a new ute before generous tax breaks end are being told not be picky and to move quickly.

Demand for models such as the Ford Ranger and Toyota HiLux already exceeds supply, with many customers waiting several months to get hold of their new wheels.

Businesses have until June 30 to cash in on tax breaks.

So to “cash in” on the instant write off — which the federal budget announced would drop to $20,000 from 150,000 on July 1 — dealers say businesses should consider demos, buying used vehicles and their non-preferred brand, colour or trim.

They also suggest buyers look interstate to avoid the anticipated “rush on assets”.

James Voortman, CEO of the Australian Automotive Dealers Association, says demand for utes will be strong. Photo: Jamila Toderas

“Try and make a purchase of a new ute as soon as you can,” Australian Automotive Dealers Association chief executive James Voortman said.

“There will be a rush on them, because they have to be in use before July 1 – not just ordered.

“My advice would be to ring around your dealers to see what’s in stock right away.”

RAM Trucks Australia spokesman Oliver Peagam said the American ute brand “has long anticipated further increases in demand as we approach the end of the temporary full expensing and, as a result, have been working hard to increase supply and reduce wait times for our trucks”.

RAM Trucks Australia shored up additional stock in preparation for the tax change.

Mr Peagam said dealers have some models in stock, but that “buyers will need to be quick as we’re not sure how long stock will last”.

Mitsubishi Australia spokesman Adam Davis said that “there may be customers who were expecting pre-EOFY delivery that may miss out” due to shipping and quarantine delays.

Mitsubishi customers looking for a ute should consider the Triton GSR or Triton Sport, which are in stock.

@davemotoring

Shopping for a new car? Buckle up, you might be in for a bumpy ride as businesses look to cash in on lucrative incentives that end in June 30. More in today’s @The Daily Telegraph #budget#auspol#cars#commerce#business#news

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Mazda spokesman Angus Thompson said the brand shored up supply ahead before the End of Financial Year.

“Mazda Australia managed to secure record levels of Mazda BT-50 inventory leading into EOFY. Our dealer network around the country received large volumes in April, and will continue to receive high levels of inventory throughout May and June, which will be available for delivery prior to June 30,” he said.

Ford’s Ranger is the most popular car in Australia.

“Customers wanting to take advantage of the final months of the instant asset tax write-off are encouraged to visit their local dealer as soon as possible to discuss availability. Our dealer network has prepared their teams in anticipation of this volume of stock and the rush towards end of financial year.”

Redbook general manager Ross Booth.

Redbook general manager Ross Booth said drivers desperate to get hold of a new or used car need to be flexible, given the stock shortages.

“If they want a new vehicle and they want a Toyota HiLux they’re not going to get one,” Mr Booth said.

“But they might get an Isuzu D-Max or an LDV. I can’t see a massive increase in new car sales frankly because there’s not enough stock to make it happen.

“If you are a business who has a good accountant you’ve probably already planned this because of the state of new cars today.”

Pixel Accountants director Radovan Sredojevic to snap up a car before the end of financial year cut-off, consider lightly used models, and seek financial advice to make sure it is the best course of action.

Photo of comparison test between Isuzu D-Max, Toyota HiLux and Nissan Navara. Photo by Thomas Wielecki.

“Not only do you have to have bought the car, it has to be in your possession by June 30,” he said.

“Unless its in a car yard you’re not going to get it by 30 June.”

Ute customer and Jim’s Fencing franchisee Andrew Melchert said the machines were perfect for work and play.

Jim’s Fencing tradie Andrew Melchert with his Ford Ranger ute. Picture: Justin Lloyd.

“I used my Ranger to tow my trailer, which is needed for all the heavy materials,” he said.

“The ute is full of shovels and power tools – all that sort of stuff. It’s my mobile office.

“I also go to the snow with it, or go mountain bike riding with the kids.”

Originally published as How to beat the June 30 asset write-off deadline