The Federal Government has announced it will extend, by six months, the $150,000 instant asset write-off to the end of the calendar year.
It represents a major win for the road transport industry in which the new threshold for each asset purchased for under $150,000 can be accessed multiple times.
Increased from $30,000 in March as a measure to mitigate the impacts of COVID-19 on the economy, the asset write-off scheme, which applies to both new and second hand assets, was originally slated to end on 30 June, 2020.
The extension is estimated to cost the Federal budget $300 million over the forward estimates.
With one of the oldest fleets in the world, the Australian industry is desperate for road transport businesses and owner-operators to update their mobile assets to improve safety technology and reduce emissions.
As individual equipment is largely customised for the specifications of the individual buyer the original deadline at the end of the financial year was problematic.
Treasurer Josh Frydenberg issued a joint statement with Michaelia Cash Minister for Employment.
"They are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth," they said.