is the 4x4 honeymoon over?

[au2000]

reported today regarding the federal budget...

The Albanese government has slammed the brakes on the amount small business can claim for a piece of new equipment – down from $150,000 to $20,000 – making it impossible for businesses to instantly claim the cost of new commercial vehicles as a tax deduction.

Australian Automotive Dealer Association chief executive James Voortman said he was disappointed the asset write-off had been scaled back, saying it helped businesses obtain more modern vehicles.

“The instant asset write-off has resulted in many small businesses being able to purchase new vehicles for business use,” he said.

“This has played a major part in ensuring Australia’s vehicle fleet is characterised by newer vehicles, safer vehicles and cleaner vehicles.”

The scheme has helped four-wheel-drive utes such as the Ford Ranger and Toyota HiLux, Australia’s best-selling cars, maintain their place in the fast lane of vehicle sales charts.

this starts from july 1 & the change has been hinted at for a long time, will this lead to a change in the buying tastes of aussie motorists going forward? I know of a few people who manipulated this rule for years claiming their hilux, ranger, triton etc as a work vehicle when in reality it was their grocery getter.

[Bossxr8]

Hard to say. I don't reckon it's as big as a take up as what some people think it is.

[Wretched]

"business use."

[Franco Cozzo]

We barely subsidized our own manufacturing industry and yet here we were giving tax incentives to everyone to buy Thailand Specials and a free trade agreement with them for the past 20 years

[GT1533]

I hope so!

[XR Martin]

Originally Posted by Franco Cozzo

We barely subsidized our own manufacturing industry and yet here we were giving tax incentives to everyone to buy Thailand Specials and a free trade agreement with them for the past 20 years

Our auto industry had the least amount of subsidies of any nation's auto industry.

[Smoke Pursuit]

Originally Posted by Bossxr8

Hard to say. I don't reckon it's as big as a take up as what some people think it is.

You would be surprised.

There will be a lot of assets cancelled if they don't turn up to prior to June 30.... No instant write off plus equipment finance rates have tripled in the last few years.

We had the perfect storm for indulgence, cheap rates and full tax deduction, as per why people went mad.

[BENT_8]

Uh, oh..someone just dropped the basket containing all the eggs.

[Sprintey]

"I felt a great disturbance in the Force...as if millions of dual cab utes suddenly cried out in terror, and were suddenly silenced."

[Sprintey]

“The instant asset write-off has resulted in many small businesses being able to purchase new vehicles for business use,” he said.

“This has played a major part in ensuring Australia’s vehicle fleet is characterised by newer vehicles, safer vehicles and cleaner vehicles.”

Newer, yeah, OK

Safer: ladder frame chassis is back, live axles, maybe even some drum brakes, higher up to roll easier

Cleaner: mmmm diesel particulates

I call BS on this one.

[Sprintey]

Originally Posted by Smoke Pursuit

We had the perfect storm for indulgence, cheap rates and full tax deduction, as per why people went mad.

Last decade has been the perfect storm for craziness almost everywhere, driven mostly by QE and ultra low rates worldwide, it's been nuts.

[kevino]

Originally Posted by Sprintey

“The instant asset write-off has resulted in many small businesses being able to purchase new vehicles for business use,” he said.

“This has played a major part in ensuring Australia’s vehicle fleet is characterised by newer vehicles, safer vehicles and cleaner vehicles.”

Newer, yeah, OK

Safer: ladder frame chassis is back, live axles, maybe even some drum brakes, higher up to roll easier

Cleaner: mmmm diesel particulates

I call BS on this one.

You cannot say this stuff on fordrangerforums.com.au

Ranger is our leader

[Charliewool]

I can’t see the sky falling over this?
Even though there was $150,000 instant write off on business purchases (machinery etc) wasn’t there a cap of only $64,000 instant write-off on vehicles?
And the instant write-off was only for small businesses with under 5 mill turnover?
Just means small businesses can now only write off 1st 20k now, and depreciate the remainder over 4 years like most larger businesses?

[Charliewool]

Also it won’t affect business vehicle leases which are still fully deductible as far as I know?

[Sprintey]

Originally Posted by kevino

You cannot say this stuff on fordrangerforums.com.au

Ranger is our leader

Well, just count us lucky that there's a solid range beneath the Ranger, to rely on



(not against Ranger per se, just against market distorting that the tax rules created, now lessened).

Boss seems to think it won't have much effect, probably as order books are full, but:
1)if you ordered one with the tax break in mind, and won't get it until after July 1, will you cancel your order?
2) new limit is 20K, does anyone have a ute under this price? A Chinese 4x2 perhaps?

Young one heard the news (tradie) and said: why would they do this? This will affect dealers and everyone who works there. Why do it if you think a recession might be coming anyway?

I'm a bit more of a cynic, I reckon the tax distortion is what has propelled the dual cab ute into its place as Australia's favourite car. We will see, it's combined with more car demand than supply currently, and in the background lots of builders falling over, low levels of construction loans, but a huge influx of migrants so demand for housing is being juiced... etc

[kevino]

Just trying to find that solid range behind Ranger

Everest

Um
Mustang Ev … nice prices .. any buyers?
Mustang

Escape no put a line through that
Puma what’s that? Can’t get any stock

[prydey]

Wow, the knives come out quick.

[Charliewool]

The massive attraction of a dual cab to a small business is it being classed a commercial vehicle… Fully claimable and relatively easy to get around FBT.
This drop from 150 k to 20k instant tax write-off per annum (remembering, even with the 150k, only 64k can be a vehicle!) won’t even put a dent in their sales!
Most small businesses lease or finance their vehicle anyhow!

[Dr Smith]

Originally Posted by Charliewool

The massive attraction of a dual cab to a small business is it being classed a commercial vehicle… Fully claimable and relatively easy to get around FBT.
This drop from 150 k to 20k instant tax write-off per annum (remembering, even with the 150k, only 64k can be a vehicle!) won’t even put a dent in their sales!
Most small businesses lease or finance their vehicle anyhow!

I agree..many I know including myself finance under chattel mortgage, so full GST claimed in period of purchase....never even considered the asset write off
as part of any purchase...it's all about cash flow to us...and getting stock without planning 10 years in advance...

[Bossxr8]

Originally Posted by prydey

Wow, the knives come out quick.

The insecurity of some men is just sad sometimes.

Dealers would be loving this change though, probably went out to the yard and threw 20k on top of the price of any of the scarce utes they have in stock.

[Polyal]

Accounting and ego aside you cant deny the fact that they are bloody handy, pretty much go anywhere, safe enough and dont use fuel like they used too. Why wouldnt you buy one if you could?

[Bossxr8]

Originally Posted by Polyal

Accounting and ego aside you cant deny the fact that they are bloody handy, pretty much go anywhere, safe enough and dont use fuel like they used too. Why wouldnt you buy one if you could?

It's that versatility that makes them so popular. No other vehicle you can buy can do all the things a ute can.

[Tonz]

2 door ute bonus.... no room for mother in law.

[Franco Cozzo]

Originally Posted by Polyal

Accounting and ego aside you cant deny the fact that they are bloody handy, pretty much go anywhere, safe enough and dont use fuel like they used too. Why wouldnt you buy one if you could?

Because they drive like **** - they handle like rubbish on stilts, they end up backwards in roundabouts or on their side on every monthly DCOA compilation the moment something goes slightly wrong, 99% of them are slow AF and they're as comfortable as driving a park bench.

Oh and if you get the one with four doors, people don't fit in the back of it comfortably and now you can't put anything decent in the back either.

Although - the single cab ones, are great - the ones made in Australia

Unfortunately most people can't afford the good ones with four doors, you know, the American ones.

[prydey]

I'm 188cm and fit comfortably in the back of a ranger...

And DCOA is hardly credible evidence...

[Franco Cozzo]

Originally Posted by prydey

I'm 188cm and fit comfortably in the back of a ranger...

And DCOA is hardly credible evidence...

Yeah and so do these people on this train:



I bet you'd be a hell of a lot more comfortable in the back of the American one, and I note you didn't counter my point about the tub being useless

Here's some non DCOA evidence for you:

[stock1991]

I'm not up with the car market, I hear as far as stock goes Toyota has auto single cab tray 4x4 available for a deal

[prydey]

Originally Posted by Franco Cozzo

Yeah and so do these people on this train:

image

I bet you'd be a hell of a lot more comfortable in the back of the American one, and I note you didn't counter my point about the tub being useless

Here's some non DCOA evidence for you:

Anyone can cherry pick to suit an agenda. You have made your thoughts on utes quite clear for a while so your opinion is hardly objective.

You could also say I'm one eyed ford, so also lack objectivity, which is likely true.

Regardless, the market has spoken and the results speak for themselves.

My next car will be a Ranger. The tub will be every bit as useful as the rear of the territory, it will tow my van better and get me around just fine.

[Franco Cozzo]

Originally Posted by prydey

Anyone can cherry pick to suit an agenda. You have made your thoughts on utes quite clear for a while so your opinion is hardly objective.

You could also say I'm one eyed ford, so also lack objectivity, which is likely true.

Regardless, the market has spoken and the results speak for themselves.

My next car will be a Ranger. The tub will be every bit as useful as the rear of the territory, it will tow my van better and get me around just fine.

You're aware I own one, right?

Just because something is popular, doesn't mean its actually good

The market has spoken about MDMA, cocaine and methamphetamines too, but I don't see you pushing for those.

[prydey]

What year is your ute again?