About temporary full expensing

You may be able to claim a tax deduction for the full cost of eligible depreciating business equipment or vehicles. Assets must be first held and first used or installed ready for use between 7 October 2020 to 30 June 2022.

It’s available for businesses with an aggregated turnover of less than $5 billion.

You can claim deductions for more than one vehicle or piece of equipment. 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. 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 your business and 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

Coins

Invest in your business right now

The uncapped threshold (subject to a car limit for passenger vehicles) means you can invest in upgraded equipment or vehicles right now to help your business grow.

Piggy bank

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.

cash

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 temporary full expensing?

A man speaking on the phone

Eligibility will depend upon:

  • your aggregated turnover (the total ordinary income of your business and that of any associated businesses) being less than $5 billion (or less than $50 million for second-hand assets)
  • the date you first held the asset
  • when it was first used or installed ready for use.

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

If you don’t qualify for temporary full expensing, you may still be eligible for the existing Enhanced Instant Asset Write-Off. The government has extended the date by which qualifying assets must be first used or installed ready for use for a taxable purpose until 30 June 2021 (previously 31 December 2020).

What are eligible purchases for temporary full expensing?

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.

Importantly, second-hand assets are only eligible for businesses with aggregated turnover of less than $50m.

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

Businesses may also deduct the full cost of improvements to purchased assets and existing eligible depreciating assets made between 7 October 2020 to 30 June 2022.

A man sitting in his van

Temporary full expensing versus enhanced Instant asset write-off

How is Temporary Full Expensing different to the Enhanced Instant Asset Write-Off rules?

Temporary Full Expensing builds on the Enhanced Instant Asset Write-Off and provides additional benefits:

  • For any purchases of eligible business equipment and vehicles, a tax deduction can be claimed up to the full cost of the equipment and subject to the car limit for passenger vehicles. The value of the equipment is not capped under this scheme.
  • Businesses with aggregated turnover of less than $5 billion are eligible.
  • Applies to the full cost of improvements to existing equipment.

What is the Enhanced Instant Asset Write-Off scheme?

Eligible businesses with aggregated turnover from $10 million to less than $500 million may be able to claim a full deduction for new and second-hand assets that cost less than $150,000 under the existing Enhanced Instant Asset Write-off rules. To qualify the asset must be first acquired between 2 April 2019 and 31 December 2020 and the asset first used or installed ready for use from 12 March 2020 to 30 June 2021.

Eligible businesses with aggregated turnover of less than $10m can also claim a full deduction for new and second-hand assets that cost less than $150,000 under the existing Enhanced Instant Asset Write-off rules. To qualify the asset must be first acquired from 12 May 2015 and the asset first used or installed ready for use between 12 March 2020 and 30 June 2021.

You can buy more than one vehicle or piece of equipment, as long as each individual asset costs less than $150,000. You may only claim the portion of the asset that you use for business, not personal use. 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 $150,000. Not every purchase will qualify, so you'll need to seek your own independent taxation advice before buying.

To understand eligibility, view case studies and other existing details on Instant Asset Write Off, read the government’s write-off asset support or the Australian Taxation Office’s (ATO) information.

Speak to your accountant or tax advisor to confirm your business and asset eligibility on the available schemes.

We're here to help

truck

Request a quote, opens in a new window

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

Two men discussing

Apply online, opens in a new window

For NAB Equipment Finance under $150,000.

A man selling food in his food truck

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.