News & Topics
Order a Nichiyu Forklift by June 30, 2009 and qualify for 30% bonus tax deduction
The Federal Government has announced a “Temporary Investment Allowance” from 10% to 30% as part of its economic stimulus program to encourage businesses to invest in new Capital Equipment and Vehicles.
The proposed allowance gives businesses a “one off tax deduction” equal to 30% of the Capital Cost of eligible New Equipment and Motor Vehicles. This is in addition to the standard depreciation claimed for such assets.
For example, on a $100,000 machine this equates to an extra $30,000 as a “one off” tax deduction.
With interest rates at 40 year lows and still dropping, Equipment and Vehicles being sold at bargain prices, a 30% extra tax deduction on the table and a $42 billion stimulus package, now may be the best time to act!!
There has never been a more critical time to position your business for the future.
Don’t miss out on this great opportunity to give your business a lift!
30% Temporary Investment Allowance
Businesses can claim an additional 30% tax deduction for eligible assets costing $10,000 or more that they order from 13 December 2008 to 30 June 2009, and install by 30 June 2010.
For eligible assets ordered from 1 July 2009 to 31 December 2009, they can claim an additional 10% deduction where they are installed by 31 December 2010.
What it Means in Real Terms
A business that buys and takes possession of a $60,000 forklift by the end of June 2009 can claim an additional $18,000 deduction in its 2008-09 tax return.
Small Businesses To Receive Additional Tax Break up to 50%
In the recent Budget, the Federal Government announced it will inject an additional $141 million to expand the Small Business and General Business Tax Break for small businesses with a turnover of $2 million a year or less.
This provides small businesses with an even greater incentive to invest in new capital items such as forklifts.
The proposed 50% tax deduction will be available for eligible assets costing $1000 or more ordered between 13 December 2008 and 31 December 2009 and installed ready for use before 31 December 2010.
Eligible Assets
The tax bonus will apply to tangible assets used in carrying on a business, for which a deduction is available under the core provisions of Division 40 (Capital Allowances) of the Income Tax Assessment Act 1997 (ITAA 1997).
Specifically, the deduction will be available for depreciating assets under section 40-30 that qualify for capital allowances under Subdivision 40-B, except for intangibles and rights that would otherwise be included by subsections 40-30(2), (5) and (6).
However, cars will not be disqualified from the allowance merely because they use the 12% method. Land and trading stock are excluded from the definition of depreciating assets, and will not qualify for the deduction.
Expenditures above the threshold which are capitalised into an existing asset as a second element of cost will also qualify for the deduction.
The deduction is on top of the usual capital allowance deduction claimable for the asset as part of the taxpayer’s income tax return.
Claiming the Deduction
The deduction will be able to be claimed based on the applicable rate (50, 30 or 10%) and the asset’s first and/or second elements of cost in terms of Subdivision 40-C.
The deduction is claimable in the income year in which the asset is installed ready for use.
Further Information
Additional details can be obtained by visiting www.ato.gov.au and we suggest you consult your tax adviser to confirm if your business is eligible for the tax break.
For details on how much the Temporary Investment Allowance can save you on your next forklift, please contact Nichiyu Forklifts. But, don’t leave it too late! Equipment must be ordered by June 30, 2009 to be eligible for the 30% tax deduction!
Nichiyu Forklifts Flameproof Forklifts for Hazardous Area Operations
Flameproofing of electrically powered equipment is mandatory for operation within hazardous areas, where a risk of explosion or fire ignition exists due to the presence of dangerous gases in the air. In Australia, these areas are defined in standards AS60079.10 and AS61241.10.
Mike Robbins Chess Engineering
Mike Robbins Chess Engineering
Isolated Ignition
Mesh Screen on Motor
Main Explosion Proof Enclosure
Traction Battery ConnectorHazardous sites are evaluated according to the type and volume of hazardous materials, the area in which the materials are handled, and the ventilation conditions (see the sidebar for a list of industry types that may contain sites considered to be hazardous).
Nichiyu Forklifts, Japan’s largest dedicated manufacturer of battery-electric forklifts, is one of the few forklift suppliers that builds Flameproof forklifts that have been fully certified to Australian Standards for use in the most hazardous of areas where powered materials handling equipment may be used, those that are classified as being Class 1, Zone 1*.
Accordingly, Nichiyu Forklifts Flameproof forklifts meet the requirements of all insurance underwriters for hazardous area operation.
Nichiyu Forklifts National Product Manager, Craig Coles, said: “The issue of flameproofing materials handling equipment for use in hazardous areas requires specialised knowledge.
“Nichiyu Forklifts has been designing and building Flameproof forklifts for over 40 years, and our experience in the area is such that other forklift suppliers often contact us for advice.”
Key areas on Nichiyu Forklifts battery-electric forklifts that are modified to make them Flameproof include:
Electric motors- The battery tray, battery and connectors
- Electrical switch box
- Main traction control panel
- Illuminated operator display panels
- Interlocked safety circuits
- Accessories such as flashing lights, reversing beepers etc
- Copper-plated forklift tines
- Conductive tyres and static discharge strips.
All electronic equipment, such as the control system and motors, is installed in completely airtight enclosures designed to withstand the force of an explosion.
Where existing equipment requires flameproofing, Nichiyu Forklifts also modifies forklifts locally, working in conjunction with one of Australia’s leading suppliers of flameproofing services, Sydney-based Chess Flameproofing, a division of Chess Engineering.
Chess Flameproofing’s Consultant, Mike Robbins, said changes in legislation have altered the regulatory landscape when it comes to the use of powered materials handling equipment in hazardous areas.
“Key changes include the repeal of the NSW Dangerous Goods Act and Regulations in 2005 - an area now covered by occupational health and safety legislation, the end of the WorkCover Authority’s approval system and the introduction of the NSW Code of Practice for the Storage and Handling of Dangerous Goods,” he said.
“While the regulatory landscape may have changed, some things remain the same.
“With some exceptions and, as it applies to protection of forklifts and industrial trucks, the NSW Code of Practice contains the same prescriptive requirements as the repealed legislation. Also, as before, operators can elect to comply with the Code of Practice or with Australian Standard AS2359.12 ‘Powered Industrial Trucks Part 12: Hazardous Areas’.”
A further complication is the move, now gaining increasing momentum, to the adoption of International Standards either in part or in full. I believe it is only a matter of time before these changes will either offer yet another choice of standard or become integrated with AS2359.12, added Mr Robbins.
“Choosing the appropriate standard for a forklift conversion essentially boils down to three key factors: duty of care; risk assessment; and price, with the last one being the least important from a regulatory point of view,” he said.
The classification of the hazardous area in which the equipment is to be used is of major importance, factors that effect the classification are the class and volumes of materials to be handled and their flammability and or explosive characteristics and their packaging groups.
Environmental factors too, must be assessed. Prevailing winds, climatic conditions and the terrain on which the machine will operate must all be taken into account.
“Each and every inherent risk factor needs to be individually assessed and, only then, can the decision be made as to the appropriate standard or code of practice,” said Mr Robbins.
“Materials handling equipment such as forklift trucks, tow tractors, sweepers, scissor lifts and boom lifts for use in hazardous areas are modified in such a way as to remove or reduce the risk of the equipment becoming a source of ignition.
“These sources of ignition include flames and sparks from exhaust systems, arcs and sparks from electrical equipment, hot surfaces and static build up,” he said.
Modifications are required to the basic equipment to ensure it complies with the relevant requirements for the specified hazardous zone in which the machine will operate.
- Mike Robbins Chess Engineering
- Protected Tynes
- Isolated Ignition
- Mesh Screen on Motor
- Main Explosion Proof Enclosure
- Traction Battery Connector
“Both diesel and battery-electric powered forklifts can be flameproofed,” said Mr Robbins, however, spark ignition engines such as those powered by LPG and petrol are prohibited in hazardous areas.
Battery-electric vehicles can be modified to make them suitable for use in Zone 1, 2, 21 or 22 areas.
“In line with the global trend to risk assessment, Chess Flameproofing carries out extensive risk assessments on each industrial vehicle that we convert or modify. This risk assessment verifies that the converted or modified equipment is in compliance with the nominated flameproofing specification and that the vehicle and associated equipment is safe for use in the nominated hazardous areas.
“This is supported with design verification and, where appropriate, third-party testing by one of Australia’s independent, accredited testing authorities. A series of in production inspections, pressure testing and electrical testing is followed by final inspection of the equipment, which is then put through simulated operating condition tests and subjected to temperature rise tests in accordance with AS2359.12.
“A certificate of compliance to the nominated flameproofing specification is issued with each flameproofing installation.
“For extreme applications where a certificate of compliance is not satisfactory, full certification to Australian Standards from one of Australia’s independent, accredited testing/certifying authorities is available at a considerable premium,” he said.
* Class O is the highest classification for hazardous areas and no powered materials handling equipment may be used in such environments.
Potentially Hazardous Sites
The following list identifies some of the industries and manufacturing sectors that may contain sites that are considered to be hazardous:
Mike Robbins Chess Engineering
Mike Robbins Chess Engineering- Ammonium sulphate
- Soda
- Electric furnace
- Compressed & liquid gas
- Coal tar products
- Dye & intermediate products
- Fermentation/ethylene methanol derivatives
- Synthetic resins & plastics
- Chemical fibres
- Vegetable fats & oils
- Fatty acids, oils & glycerin
- Distillation & brewing
- Pharmaceuticals
- Paint & solvents
- Insecticides & pesticides
- Cosmetics & perfume
- Oil refining
- Rubber products
- Processed paper & fabrics
- Dry cleaning
- Printing
Double or Triple your warranty!
STATEMENT OF EXTENDED WARRANTY
(For NICHIYU Forklifts Only)
This statement applies to new forklift trucks supplied by Nichiyu Forklifts or its authorised dealers to the original purchaser. This statement defines the extended warranty condition after the manufacturer’s original warranty period has expired.
Warranty Period
The extended warranty starts from the expiry of the manufacturer’s original warranty period. Extended periods available are 24 months or 2000 operating hours and 36 months or 3000 operating hours, whichever occurs first. This period commences on the date of delivery of the machine to the original purchaser.
Conditions of the Extended Warranty
The extended warranty must be purchased by the original purchaser within one month after the new equipment is delivered OR during order placement of new equipment. It will not be accepted after one month. To effect the extended warranty, the customer shall conclude the preventive maintenance (PM) service agreement with Nichiyu Forklifts or its authorised dealers within 3 months (90 days) interval.
The cost of the PM service is NOT included in the extended warranty and shall be charged to the customer accordingly. The repair of the equipment under this extended warranty will be organised in normal working days and hours. If the customer requires after hours service, an additional charge will be applied.
The equipment must be repaired or serviced by Nichiyu Forklifts or its authorised dealers. The equipment should not be repaired or serviced by any external unauthorised parties. The equipment shall use only Nichiyu Forklifts genuine OR authorised spare parts for repair/replacement. Nichiyu Forklifts reserves the right to void the extended warranty if non-Nichiyu Forklifts parts are being used.
Warranty judgment will be done by Nichiyu Forklifts. If Nichiyu Forklifts judges that abnormalities and/or malfunctions are the result of misuse and/or abuse by the customer, these are NOT covered by this warranty and all repair costs will be charged to the customer.
Warranty Covered Items
The extended warranty covers the repair cost for labour and items listed in the next clause. Consumable parts, adjustments and lubrications are NOT covered under warranty. If applicable items listed in the next clause have any abnormalities and/or malfunctions, Nichiyu Forklifts or its authorised dealers will repair them free of charge.
Covered Items
This warranty covers the following components:
Chassis frame, Structure of mast, Overhead guard.
Hydraulic pump, Hydraulic control valve
(except Valve linkage and Valve lever), Hydraulic cylinders
(except Seals, Packing and O-rings).
Traction motor, Hydraulic motor (except Motor brush and Brush spring).
Control unit includes Transistor module, Main control circuit board, Main diode and Current sensor
(except Contactors).
Display unit and Display control board, Power steering controller (except Steering motor and Steering sensor),
Speed sensor, Body harness.
Steering linkage (except Steering motor and Steering sensor).
Brake linkage (except Brake shoe/pad).
Mast rollers, Reach rollers and Bearings.
Excluded Items
This warranty does NOT cover the following:
Horn, Buzzer, Lighting equipment, Bulbs, Fuses.
All kinds of switches <>(Limit switch, Micro switch, Key switch, Foot switch, Horn switch, Seat switch,
Emergency switch, etc.).
Power steering motor and Steering sensor, Tyres and Wheels.
Hydraulic seals, O-rings and Packing, Hydraulic valve levers and linkages.
Accelerator card and sensor, Accelerator lever and linkage, AOS potentiometer, Fingertip hydraulic lever, Brake shoe/pad.
All kinds of adjustment, All kinds of lubrication, All kinds of filters, Changing and refilling oils, Refilling water to the battery.
Battery and Battery plug, Charger and Charger plug, Attachments. (Regarding the battery, charger and attachment, each manufacturer may have their own warranty conditions).
Contact Nichiyu Forklifts for further details.