Take advantage of new tax breaks

Reinvest in or grow your container fleet before prices rise

The spread and containment efforts of COVID-19 (please stay safe) is changing the landscape for all businesses.

To reduce the potential impact of this global issue on the economy, the Australian Government has introduced a range of tax initiatives designed to support business through this challenging time. With everything going on, you may not have considered it yet. See below to better understand how you could take advantage of these stimulus measures by investing in your container fleet.

Take advantage of tax incentives before prices increase

Now is a good time to take advantage of these tax incentives to secure the containers you require to update or grow your container fleet.

It also coincides with expected price increases in shipping containers, due to the weakening Australian dollar. 

If now is not the time to purchase, why not consider hiring? You can preserve your cashflow, manage your assets with greater flexibility and still have access to the a wide range of high quality containers that SCF has available.

Instant Asset Write-Off For Eligible Businesses*

The Government has raised the instant asset write-off threshold for businesses. What does this mean?

The details are as follows:

  • Threshold raised for asset values up to $150,000 (up from $30,000)
  • Businesses will be able to immediately deduct purchases of eligible assets costing less than $150,000 (increased from $30,000)
  • The asset threshold applies on a per asset basis, which would enable businesses to immediately write-off multiple assets
  • Businesses must have an aggregated turnover of less than $500 million (up from $50 million)
  • Applies from 12 March 2020 until 30 June 2020
  • Applies to new or second-hand assets first used, or installed ready for use in this timeframe

For full details, visit the Treasury's Economic Response to the Coronavirus here

*Speak with your tax specialist for professional tax advice relevant to your business

Instant Asset Write-Off - Example 1

  • Your company has an annual turnover less than $500m.
  • You purchase a container from SCF and pay less than $150,000 (excl GST) before 30 June 2020.
  • Your company is immediately eligible to write-off the purchase as a complete tax deduction.


Instant Asset Write-Off - Example 2

  • Your company has an annual turnover less than $500m.
  • You purchase 10 containers with an individual cost of $40,000 (excl GST) each,  before 30 June 2020.
  • Your company is immediately eligible to write-off each container, even though the total price paid to SCF is over $150,000 as the incentive applies to individual assets.

Accelerated depreciation deductions

The Backing Business Investment is the second initiative that has been introduced. The details are as follows:

  • Businesses with a turnover less than $500m will be able to deduct 50% of the cost of an eligible asset on installation.
  • Existing depreciation rules will apply to the balance of the asset's cost.
  • There is no asset value threshold for this investment incentive.
  • Access to the initiative is time limited to 15 months, up until 30 June 2021 and applicable to purchases made after 12 March 2020.
  • This does not apply to second hand assets.

This initiative will affect businesses differently depending on your depreciation schedules. Speak with your tax specialist to understand the implications this incentive will have on your business.

For more information visit the Treasury's Economic Response to the Coronavirus here.

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