INSTANT ASSET WRITE-OFF NOW $150,000 PER ASSET, ONLY UNTIL 30th JUNE!
The latest Government Economic Stimulus Measures mean now’s YOUR BIGGEST OPPORTUNITY to SAVE THOUSANDS on your TAX this Financial Year.
The Instant Asset Write-Off (IAWO) threshold has been increased from $30,000 to $150,000 and been expanded to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million).
This applies from 12 March 2020 until 30 June 2020, for both new and second-hand assets, first used or ready to use in this timeframe.
How can you benefit?
- The higher IAWO threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets (including motor vehicles) each costing less than $150,000.
- The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets (vehicles).
- The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.
How does it work?
Example Jack Quick & Beanstalk Carpentry*
Jack Quick owns a company, through which he operates a carpentry business, Beanstalk Carpentry. The company has an aggregated annual turnover of $2.5 million for 2019-20.
On 31st March 2020 Jack purchases a New Ute for $45,000 exclusive of GST, and a second hand van for $35,000 exclusive of GST, for use in his business.
Under the tax arrangements in force prior to 12th March 2020, the company is not able to immediately deduct assets costing more than $30,000 and instead would depreciate the vehicles using the diminishing value method.
Under the new $150,000 Instant Asset Write-Off, the company would instead claim an immediate deduction of a total of $80,000 for the purchase of the Ute and the Van.
At the company tax rate of 27.5% for small businesses, Jack / his business will pay $22,000 less tax in 2019-20.
What I need to do?
Contact us TODAY to discuss your specific needs & how you can TAKE FULL ADVANTAGE of this ONE OFF Tax benefit before 30th June 2020.
*Individual circumstances may differ, so we recommend speaking with your accountant to check if this scheme applies to you.