Time is ticking - make the most of the instant asset tax write-off

Earlier in the year the Australian Government announced a package of measures to help protect the economy against the economic impact of coronavirus.

Last Updated 23 July 2020

Treasurer Josh Frydenberg, recently announced that the federal government's $150,000 instant asset write-off scheme will be extended until the end of the calendar year!1

This comes as welcomed news for business owners looking to buy equipment, machinery, and other materials for their business. The extension was initially in place until 30 June 2020 and the deadline has now been pushed out until 31 December 2020.

The $150,000 instant asset write-off is set to drop back to $30,000 from 1 January 2021. So get in quick and find out how you can make the most of the instant asset write-off and give your business a head start.

When it comes to financing your business needs, give your local Mortgage Choice broker a call today.

Earlier in the year the Australian Government announced a package of measures to help protect the economy against the economic impact of coronavirus.

One of these measures was the Government's significant increase to the maximum instant asset write-off amount for small and medium businesses - and it is a huge plus for businesses looking to purchase big-ticket items.

The Government increased the instant asset write-off threshold from $30,000 to $150,000 and expanded  access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million).2

Eligibility to use instant asset write-off depends on3:

  • your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
  • the date you purchased the asset
  • when the asset was first used or installed ready for use
  • the cost of each asset being less than the threshold. Read more about the Instant asset write-off thresholds here.

The criteria have changed over time so make sure you check whether your business is eligible. Read more about the eligibility criteria here.

For the most up to date and latest information on the instant asset tax write-off  be sure to visit ATO.gov.au.

When it comes to financing your business needs, Give your local Mortgage Choice broker a call today. They can help you navigate through the lending and asset finance options to find a solution that meets your unique business needs.  

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Posted in: Small business