2023 Ford Ranger and Toyota HiLux business buyers beware! Act now or your next ute will be a whole lot more expensive

This week’s federal budget boasts a range of support measures for small business operators, but one initiative will surely be seen by many as a sizeable step backwards rather than forwards.

In amongst energy price relief and incentive plans, new cyber security measures and reduced quarterly tax installments for GST and income tax, is a $20,000 instant asset write-off for small businesses with annual turnover of less than $10 million.

Sounds great. The problem is that figure is down from $65,000 in the current financial year.

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So, tradies and other small businesses looking to nominate work vehicles for the asset write-off will need to act before June 30 this year to take advantage of the existing $65K cap.

Not only that, limited, or at the least patchy supply of popular models like the market-leading Ford Ranger and Toyota HiLux means business owners will be pushing dealers even harder for delivery prior to July 1st.

For example, Ford Australia has noted, “Extended wait times for models like the Ranger Platinum, Ranger Wildtrak V6 and Ranger Raptor”, directing consumers to a dedicated website detailing model and grade availability.

No doubt the Australian Tax Office (ATO) will be casting a careful eye over pre-billing/pre-payment transactions as tax time comes around, because usual guidance is that eligible assets “are first used or installed ready for use” within the relevant financial year.

Small businesses are currently able to instantly write of the cost of a HiLux SR5+ 4x4 dual cab with ‘Premium Interior.’ (Image: Byron Mathioudakis)

That said, the $20,000 threshold will apply on a ‘per asset’ basis, so small businesses can instantly write off multiple assets.

For context, small businesses are currently able to instantly write of the cost of a Ford Ranger Sport 2.0 4x4 dual cab ($64,490), or Toyota HiLux SR5+ 4x4 dual cab with ‘Premium Interior’ ($64,430).

With less than a third of that amount available it’s likely ute buyers will shift to lower spec models or alternatives from challenger brands like the GWM Ute Cannon (from $38,990), Foton Tunland S (from $34,990) or Mahindra Pik-Up (from $26,990).