Instant Asset Write-Off - $150,000 Extended to 30th June 2022!
It's that time of year and if you want to fully expense your packaging equipment and machinery purchase then get in before 30th June. For a number of years now the Federal Government via the Australian Taxation Office has allowed Instant Asset write-off's for eligible businessses. This year it's remained at $150,000 for each asset purchase which has now been extended out to June 2022 under the latest budget announcements..
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, installed or used prior to 30th June to claim in this financial year.
So what is an eligible business?
A business earning less than $5 billion can write off the full cost of depreciable assets purchased after 6th October 2020.
A business (small to medium) with an aggregated turnover less than $50 million can also apply the Instant Asset Write Off to second hand machinery.
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 - for small to medium business) 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.
Click to view our range of Packaging Machinery.
Click to iew our range of Second Hand Packaging Machines.
For information direct from the ATO please follow this link - Instant Asset Write-Off 2021 .
Get Packed recommends you discuss your Instant Asset Write Off eligibility with your accountant and responsibility of this lies with you.