In response to the COVID-19 crisis, the Australian Government has increased the Instant Asset Tax Write-off to $150,000.
Is your business eligible to benefit? Talk to us today!
In March 2020, the Australian Government increased the Instant Asset Write-Off (IAWO) threshold to help small & medium business owners weather the COVID-19 crisis.
The threshold has now been raised from $30,000 to $150,000 providing cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000.
The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets. The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.
Is your business eligible to benefit? Eligible businesses should consult their tax or financial professional to understand how their business could benefit from this.
Eligibility:
Are you eligible to take advantage?
Well, the good news is that the Australian Government is expanding access so that more businesses can take advantage of the Instant Asset Write-off.
To qualify the annual turnover threshold for businesses is now increasing from $50 million to $500 million. Expanding the threshold will mean an additional 5,300 businesses who employ around 1.9 million Australians will be able to access the Instant Asset Write-off for the first time.
Timing:
When does this increased program commence?
This new Instant Asset Write-off proposal kicks off on 12 March 2020 and will run until 30 June 2020. It applies to new or second-hand assets first used in this timeframe.
Seek independent advice from your accountant.
We advise all customers to speak to their accountant and seek professional advice before making a purchase decision.
Further Information
For more information regarding the Instant Asset Write-off program and other stimulus package supporting Australian Businesses please visit business.gov.au.
