Tradies will no longer be able to buy a ute and claim it back on tax in one year, due to the new Federal Budget announcement.
The Motley Fool’s Chief Investment Officer Scott Phillips translated the new budget to Triple M Breakfast with Marto, Margaux and Dan, explaining what changes to expect for small businesses.
In October 2020 the Australian Government allowed for tradies battling lockdown restrictions to claim back tax write-offs under $65,000 in one year as opposed to eight.
The program was due to end in June 2023, but now the program has been reduced to $20,000 per asset basis.
“The bad news is if you didn’t buy the ram, or the Chevy, raw souped-up Hilux you’ve probably missed your chance because it’s now $20,000. It’ll cover you for tools, it’ll cover you for computers and that kind of stuff.” Said Phillips.
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