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.
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.
When does this increased program commence?
This new Instant Asset Write-off proposal kicks off on 12th March 2020 and will run until 31st December 2020. It applies for new or second-hand assets first used in this timeframe.
Seek independent advice from your accoutant.
We advise all customers to speak to their accountant and seek professional advice before making a purchase decision.
For more information regarding the Instant Asset Write-off program and other stimulus package supporting Australian Businesses please visit business.gov.au.