Instant Asset Write-Off Increased to $150,000 Extended to 30th June 2021!
Well it looks like it's back again, but bigger and better and extended again! For a number of years now the Federal Government via the Australian Taxation Office has allowed Instant Asset write-off's for eligible businessses - previously up to $30,000 each - but this year to boost business investment it's been increased to $150,000 each which has now been extended beyond 1st July out to 31st December 2020.
What does instant asset write-off mean?
It means that the cost of each asset can claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use. So purchases must be completed and used prior to 30th June.
So what is an eligible (small and medium) business?
One where your aggregated turnover is under $50 million. Or all businesses up to $500m till 31st December 2020.
What is the eligibility of the asset purchase?
The threshold amount for each asset is $150,000. This means you can claim an instant asset write-off on your tax on each asset purchase (new or second hand) up to the amount of $150,000. The cost of each asset being claimed must be under $150,000. Note that there are exclusions, for example cars purchased for business use and the instant asset write-off is limited to the business portion of the car - so we highly recommend talking to your accountant before making assumptions.
So talk to one of the staff at Get Packed to discuss what asset purchases may assist with the productivity and cost saving of your business - whilst taking advantage of the instant asset write-off.
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