02 March

As EOFY Approaches – Review, Revisit, React

So it's Easter, school holidays, a snap lockdown in Brisbane, a container ship has been blocking global trade routes in the Suez Canal, the BAS quarter is ending, you've (hopefully) got a flat-out work schedule but despite all that, 30 June and the end of financial year is approaching, fast. If you let everything else takeover or overtake you, you're likely to miss out on capitalising on the opportunities available which could provide long term benefits for your business.

Backtrack and recall that this time last year, many businesses put any new vehicle and equipment acquisitions on the back-burner due to the economic uncertainties around COVID-19. Back to now and we’re putting out this timely reminder. The countdown to EOFY is well and truly on and those intentions you had to upgrade, replace and expand your trucks, are still to be turned into action and then become reality.

A raft of investment incentives were put in place by the Federal Government as part of the economic stimulus initiative and many of those tax benefits are still on the table. We want our customers to make the most of these opportunities to realise long term improvements to productivity and increased profitability. The reminder – review your intentions, revisit the tax measures and react by contacting Jade Truck Loans to arrange a cheap truck finance.

Review Vehicles

  • Review your current truck or fleet of trucks from several points of view.
  • Condition: consider if the cost of maintenance in the near future than possible loan repayments on a new truck.  Use our Truck Loan Calculator for a quick repayment estimate on a new truck to use a benchmark.  Remember, the service contract on a new truck may be incorporated into the truck loan, further easing cash flow pressures.
  • Fit for purpose: many operators pivoted during the pandemic and your operations may have remained in that altered state or be on a return to normal business. Is your truck still suitable for your current work contracts and what you anticipate may come your way? For some truck owners in the construction sector, there is a lot of potential work in the pipeline with the surge in infrastructure projects across many regions.

Investing in new trucks may be more cost-effective than you realise with interest rates at low levels and many new models launched onto the market with competitive pricing offers.

Revisit Tax Measures and Incentives

There was a massive emphasis on Instant Asset Write-Off (IAWO) throughout 2020 by truck sellers and lenders, Jade Truck Loans included. You may not have had the time to consider it in full as yet but now could be the time to have a detailed look at IAWO and the similar asset investment incentive – temporary full expensing. Review the detail at ATO to check your eligibility.

For eligible businesses that are in the process of acquiring eligible trucks, the benefits associated with these measures could be realized in the current financial year, provided the truck is purchased within this fiscal year and financed with an appropriate truck loan. The tax advantages revolve around the concept of accelerated depreciation of assets, specifically trucks in this case. Unlike the usual depreciation calculations, which involve spreading the depreciation of an asset/truck over multiple years based on the percentages permitted by tax regulations, these measures allow for 100% of the purchase price to be depreciated within the financial year of the acquisition. This current financial year is only a few months away.

Although Jade Truck Loans presents a comprehensive array of truck loan options, all at more favourable interest rates, it's the Chattel Mortgage option that is particularly well-suited for those aiming to capitalize on the accelerated asset depreciation measure.

React with a New Truck Purchase

Having reviewed and revisited, the next step is reaction and expediting your new truck purchase. As we mentioned above, Chattel Mortgage is the loan product of choice to suit the current tax measures. But all our truck loan products include a tax benefit and all have cheap interest rates.

Our full portfolio includes:-

Feel free to consult our loan interest rate comparison calculator, which can provide you with repayment estimations tailored to your chosen truck and preferred loan. Alternatively, you can utilize our dedicated truck loan calculator to map out your loan preferences. This calculator not only computes repayments but also offers the additional functionality of factoring in a residual or balloon amount in the calculations.

  • No deposit finance available - 100% purchase price included in the loan
  • Quick quotes, fast approvals
  • Low Docs and No Docs truck loan options across our loan portfolio
  • Cheap interest rates, fixed for the loan term
  • Rates, terms and loan conditions negotiated on your behalf by our highly skilled, professional finance lenders

To guarantee that you fully capitalize on the tax and business advantages associated with acquiring a new truck within this fiscal year, we urge you to reach out to us as soon as possible. This will allow one of our consultants to promptly initiate the process of securing an affordable truck loan for your needs.

Contact Jade Truck Loans on 1300 000 003 to discuss a suitable cheap truck loan for your new vehicle.

DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.

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