Help & support
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 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 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.
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:
See how you could benefit4
Our most popular finance option. You own the equipment and pay it off over time.
Our Equipment Finance team can talk to you over the phone, online or meet you in person at a time that suits you.
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.