As you may already know, in March 2020 as the coronavirus pandemic began to have huge impacts on our day to day lives, the Government made adjustments to the existing instant asset write-off scheme. If you missed our article explaining everything you need to know about the scheme, you can find it here.
In a nutshell, before the Government stimulus package was announced, an existing instant asset write-off scheme for businesses was available (with a turnover of up to $50 million for assets up to $30,000), allowing businesses to claim a tax break on what they spend on these business-related assets.
In an effort to enhance support for Australian businesses, this was increased to businesses with an aggregated annual turnover of less than $500 million and the $30,000 asset write-off has grown to $150,000.
This enhanced instant asset write-off scheme was initially set to end June 30 2020. However, the Government has decided to extend this new scheme until December 31st 2020 (all other conditions remaining the same).
The thresholds have changed over the last few years with the complete list available on the ATO website. Be sure to talk to your accountant to assess the appropriateness of these options for your business.
Let us help you maximise the instant asset write-off scheme for your business
With up to $150,000 in instant asset write-offs available as well as improved lending options by SME lenders, what better time to grow your business and help reduce how much tax you have to pay at the end of the financial year?
You might be looking for commercial equipment (say goodbye to having to hire every single time), maybe it’s time to expand your fleet of vehicle (check out these great commercial vehicle savings from our new car buying partners, Carconnect) or you're looking for cash flow funding solutions. Whatever you’re looking for, our team at Stratton Finance is here to help.
It's also worth noting that in many instances, you can get approved up to 90 days prior to purchase, giving you plenty of time to hunt around.
We’ve worked with thousands of Aussie businesses just like yours to take advantage of saving on tax and making the most of whatever economic stimulus package the Government is offering at the time.
* All information cited above is provided on a general basis and in the case you are considering the appropriateness of this information should consult your accountant.