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).3
Eligibility to use instant asset write-off depends on2:
- 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.