2015 Budget Tax Breaks Provide Perfect Opportunity For Small Businesses To Invest In GPS Fleet Technology

Small business, or companies that have an aggregate business turnover annually of less than $2 million, will be able to claim a tax deduction on capital expenditure of assets up to $20,000 thanks to the federal budget announced last week. This tax deduction is effective on assets purchased from 13 May 2015 until 30 June 2017[1]. This comes as positive news for small businesses operating fleets.

Operating a fleet and the costs associated with a mobile workforce is the third highest cost for a business, behind employee salaries and rent. While the cost around operating a fleet may be high for a business, it is also the most addressable cost and the best chance for businesses to mitigate risk and drive down overhead, something that technology can greatly assist in. However, often small businesses are reluctant to purchase technology that will benefit them greatly in the long term due to the upfront cost.

This is especially true in regards to the Work Health and Safety Act 2011, which defines a fleet as a 'workplace' and imposes duty of care upon business owners and fleet managers to ensure the health and safety of employees within their vehicles. Businesses that fail to uphold this duty can be fined up to $600,000 or face a term of up to five years imprisonment if found guilty for non-compliance. This would have catastrophic consequences for a small business. With this in mind, it is essential for small business owners to take the necessary measures to prevent any violation of the WH&S Act and keep their people safe.

Navman Wireless provides GPS fleet management technology that allows clear visibility across a fleet as well as into driver behaviour to ensure compliance with WH&S. Using this technology allows fleet managers to take proactive steps to remediate non-compliance with legislation and company policies, keep track of employees standard hours and also issue alerts to drivers urging them to take regular breaks. Violation notices can also be issued to both the driver and the fleet manager, should the driver fail to stop for a rest break.

For small business owners looking to improve the safety of their fleet, the new tax break means any assets costing less than $20,000 are eligible for immediate deductibility. While keeping the fleet safe and driving down the cost of the business should be incentive enough to invest in a GPS fleet technology solution, the new tax break makes it the perfect time to do so.

[1] http://www.budget.gov.au/2015-16/content/highlights/jobsandsmallbusiness.html