Last Updated 27 May 2021
The 2021-22 Federal Budget has announced last year's business write-off perks being extended by another 12 months.
That’s great news for your small business! It’s a supersized extension of the $150,000 instant asset write off, which was scheduled to end on 31 December 2020. It means you can invest in new equipment to boost productivity or explore new product lines, while pocketing valuable savings on tax. Even better, it’s an opportunity to take advantage of super-low interest rates on business loans to fund new equipment.
The Instant Asset Write-Off extension, dubbed Temporary Full Expensing, allows an immediate deduction for purchases of new eligible depreciating assets (for businesses with an aggregated turnover under $5 billion), eligible second-hand assets (for businesses with aggregated turnover under $50 million), and the balance of a small business pool at the end of each income year in the period (for businesses with an aggregated turnover under $10 million).1