As part of the COVID-19 Business Stimulus Package, the Federal Government increased the Instant Asset Write-off from $1000 per item to $150,000 per item. They also expanded the criteria to claim this deduction to include businesses with an aggregated turnover of up to $500 million.
With the economy still struggling, the new increases have now been extended to the end of this calendar year.
That means any eligible, depreciating asset purchased for your business must be first used or installed ready for use by 31 December 2020.
Eligible assets may be new or used and you can purchase multiple assets as long as the cost of each individual asset is no more than $150,000.
Some businesses have been unaffected by the pandemic while others have found ways to expand. If your business has been doing well, the changes to the Instant Asset Write-off could be a highly tax effective way to grow your business. But make sure you talk to us before you make any plans. We want to ensure your purchases fit the government’s eligibility criteria.
For straight-forward taxation, accounting and financial advice, you can rely on, call the team at SVA and WPA on 02 8850 0388.