Expanded Instant Asset Write-Off to End in Coming Weeks
*Please note the dates have been revised by the ATO. Click here to find out more.
SME’s are being reminded by the ATO that there is just weeks left to make the most of the Governments increased instant asset write-off.
Many businesses are overlooking the opportunity, despite the instant asset write-off being five times the usually available amount.
The government announcement in March that $700 million is being injected to increase the instant asset write-off from $30,000 to $150,000 was designed to encourage the purchase of bigger ticket items such as cars and equipment.
The measure has not only increased the asset write off but expanded the inclusion to businesses with aggregated annual turnover of less than $500 million from the previous $50 million.
This expanded measure will run until 30 June 2020.
The new threshold of $150,000 applies for a limited time for depreciated assets first used or installed for use between 12 March 2020 and 30 June 2020. After this period the threshold will reduce to $1,000.
Excluded assets include trading stock items, land, non-farming buildings and capital works, horticultural plants, water facilities, fodder storage assets and farm fencing.
Motor vehicles are eligible assets however a car cost limit of $57,581 for 2019-20 still applies to cap deductions.
More information can be found on the ATO website here.
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