The Government made changes to the $150k instant asset write-off scheme that could see more businesses able take advantage of this perk. On the 9th of June 2020, the Government stated they will be extending the scheme for another six months until the 31st of December 2020.
So, who is eligible to take advantage of the instant asset write-off? Australian businesses with an annual turnover of less than $500 million (up from $50 million) will be able to take advantage of the extended timeframe to acquire and install assets up to $150,000 (up from $30,000). Further to this, businesses could benefit from the scheme as it could boost cash flow by bringing forward tax deductions for eligible purchases.
The instant asset write-off will revert on the 1st of January 2021 and will then only be available for small businesses with a turnover of less than $10 million, and the threshold will be decreased to $1,000.
There are some further conditions to consider regarding eligible assets, so if you need to discuss your situation with one of our experienced accountants please contact our office.
– Nicola Dawson & Kanista Arokianathan
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