Now is the time to buy machinery

As the COVID-19 crisis continues to wreak havoc across the economy, businesses are urged to take advantage of the Government’s recently announced economic rescue packages to upgrade their fleets.

So if you’ve been sitting on the decision to purchase that brand spanking new tractor of your dreams, the time to act is now.

In the recent stimulus packages presented by the Federal Government, designed to provide relief to small and medium businesses (SME), the instant asset write off (IAWO) has been increased from $30,000 to a whopping $150,000.

In addition, you only have till June 30, 2020 to take advantage of that measure.

From July 1, 2020, the IAWO will revert back to $1000 for small businesses with turnover of less than $10 million.

And just to be clear, the $150,000 is PER ASSET which means you can claim the full amount of all purchases you make primarily for your business, provided they cost less than $150,000 each.

This inadvertently affects most machinery, especially imported ones.

According to Case IH dealership, O’Connors, which predominantly imports most of its stock from North America, there is a significant risk of price rise across its products not too far down the track.

“We cannot predict when these will be, but we expect them to be swift,” said O’Connors CEO, Gareth Webb.

“Pricing on Case IH products is set by the company in the US and is vulnerable to shifting currency markets.

“Given the dollar has dropped over 20 per cent since the beginning of the year, we also expect them to be large.

“For this reason, we strongly recommend customers review their purchasing plans. If you are considering an upgrade or addition within the next two years we advise you to act on those plans, urgently.”

Webb urges customers to place a retail order with their dealers in order to lock in current pricing and avoid dramatic price increases in the future.

“Only customers can secure forward-order pricing, Case IH dealers are unable to order floor stock for future sales at current prices.”

We urge you to check with your local dealers in regards to placing forward orders or other measures they might have in place to help customers avoid the price spike.