“We will supercharge the instant asset write off so businesses can immediately make new purchases of up to $150,000 and reap the rewards ” – Prime Minister Scott Morrison.
The federal government recently announced a new and improved instant asset write-off initiative due to the economic impact of the Coronavirus. It’s bigger and better than last financial year and now is the time to take advantage of it!
What Is The Instant Asset Write Off?
The instant asset write-off is a deduction that small and medium businesses can use to instantly write off assets purchased up to a set value.
This means, that instead of the asset depreciating over time and claiming a portion of the original expense over multiple years, businesses can now claim the entire expense in the financial year the asset was purchased.
What Has Changed?
The government has introduced two main changes to the instant asset write-off conditions in order to boost and stimulate the economy.
- Eligible businesses must not have an annual turnover of over $500 million. Previously the instant asset write-off was only available to businesses with a turnover of up to $50 million.
- Assets valued up to $150,000 (ex GST) can now be depreciated instantly under the new scheme. Previously the value of the asset could not be over $30,000.
If you are a small or medium business, you can claim an instant write-off for any single business asset less than $150,000 (ex GST) and this applied on a per asset basis, so eligible businesses can instantly write-off multiple assets. The purchases must be made between 12th of March 2020 and 30th June 2020. The threshold applies to both new and used business equipment, which means as you claim the whole expense that financial year, thus lowering your taxable income. WIN WIN!
What Assets Can Be Written Off?
Any business asset worth less than $150k, including:
- Vehicles such as cars, vans and trucks
- Farm equipment
- Heavy machinery
- Computers, electronics and phones
- Much more! If it’s predominately for business use, it can be written off.
Contact Us For Finance
Here are On Road Finance, we have access to over 30 credit providers and although rules and guidelines have changed over the past few weeks, our team of finance brokers are confident we can still assist you with your business needs.
$150k is a large investment from a cash flow point of view, so why not let On Road Finance do all the legwork for your business so you can take advantage of this great initiative.
To apply for a commercial loan today, please submit an online finance application or contact our team of brokers on 1300 518 580.