About the new instant asset write-off

With the new instant asset write-off, you may be able to claim a tax deduction of up to $150,000 when eligible business equipment or vehicles (up to the value of $150,000) are first used or installed ready for use between 12 March 2020 to 31 December 2020.

The amount has increased from the previous threshold of $30,000. It's available for businesses with an aggregated turnover of less than $500 million (previously $50 million).

You can buy more than one vehicle or piece of equipment, as long as each individual asset is less than $150,000. You may only claim the portion of the asset that you use for business, not personal, use. The tax office calls this the “taxable purpose portion” of the asset. It's important to understand that while you may only claim the taxable purpose portion as a deduction, the entire cost of the asset must be less than the $150,000. Not every purchase will qualify, so you'll need to seek your own independent taxation advice before buying.

Why choose finance through NAB?

Reasons to choose NAB Equipment Finance for your vehicle and equipment purchases

  • We have a variety of finance options to suit your needs.
  • An easy online application process, with rates from 3.95% p.a. on cars, vans and utes.1
  • Dedicated business bankers, here to help discuss your options.

Here’s how it works

  • Step 1 Get a quote: use our quote tool to discover what you can borrow and how much it will cost.
  • Step 2 Get advice: speak to your accountant or tax advisor to determine whether the asset you want to purchase is eligible.
  • Step 3 Apply: use our simple online application form to apply or speak to your local banker.
  • Step 4  Sign: after approval, send us the purchase invoice and sign our application.
  • Step 5 Collect: you're ready to collect your vehicle or equipment.

Benefits for business owners

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Invest in your business right now

The higher threshold means you can invest in upgraded equipment or vehicles right now to help your business grow.

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Save money

Instant write-off means you may be able to claim an upfront tax deduction for the business portion of eligible assets. That way there’s more money in your bank account to run your business.

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Easy and flexible loans to manage your cashflow

You can borrow to fund the purchase of equipment and may still claim a 100% deduction for the cost of eligible items. We have Equipment Finance Loans with competitive rates and repayment options to suit your cashflow.

Who’s eligible for the asset write-off?

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Eligibility will depend upon:

  • your aggregated turnover (the total ordinary income of your business and that of any associated businesses) being less than $500 million
  • the date you purchased the asset
  • when it was first used or installed ready for use
  • the cost of the asset being less than the threshold ($150,000 for each asset).

Talk to your accountant or tax advisor to confirm your business eligibility.

What are eligible purchases?

You can buy new or used assets, but they need to be used for business purposes. This may include computer hardware, vehicles, trucks, tractors, office furniture, office fit-out and equipment and other business equipment.

There is a car limit that applies to the cost of passenger vehicles.

To understand eligibility, view case studies and other details, read the Government’s write-off asset support or the Australian Taxation Office’s (ATO) information.

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We're here to help

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Get an easy online quote for a vehicle or equipment loan with NAB.

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For NAB Equipment Finance under $150,000.

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Find out more

NAB has a wide range of financing options to suit your needs.

Important information

1 3.95% p.a. online fixed rate applies to approved vehicle and equipment loan applications that are quoted online:

  • with loan amounts up to $150,000
  • for new or used cars, vans and utes
  • with loan terms up to 5 years for new assets and 3 years for used assets
  • with no balloon (end of term lump sum payment).

Loan must be drawn down within 35 days from the date of our online quote.

Vehicle and equipment loans are subject to approval. Standard vehicle and equipment loan terms and conditions, and fees and charges apply.

Online decisions are subject to eligibility, credit assessment, lending criteria and identification verification. You can read the full eligibility criteria online.

3.95% p.a. online fixed rate is available from 14 September 2020, remains valid until withdrawn and is subject to change without notice.

Tax invoices should be provided by the dealer and note, that private sales require extra time to conduct an inspection and valuation.

NAB lending criteria, fees and charges and terms and conditions apply.

The Equipment Finance products are issued by National Australia Bank Ltd ABN 12 004 044 937

This information is current as at 17 August 2020 and is intended to provide general information only, without taking into account any particular person’s objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of this information in regard to your personal objectives, financial situation and needs.

The tax benefit information provided in this document is of a general nature and based on present taxation laws and regulations which may be subject to change. We recommend that you seek independent tax advice before making any decision based on this information.