Businesses looking to invest in their operations have been given more opportunity to do so, after the deadline for the expanded instant asset write-off scheme was recently pushed out by six months.
While the expanded scheme was originally set to run until 30 June 2020, it will now be extended until the end of the year.
As part of the Federal Government’s $17.6 billion coronavirus stimulus package, announced in March, the instant asset write-off threshold was boosted from $30,000 to $150,000.
This means that – until 31 December 2020 – eligible businesses can instantly deduct the cost (the business use portion) of any assets worth up to $150,000 purchased this year, rather than claim deductions over a number of years. This can mean significant reductions in a given business’s taxable income and subsequent tax bill.
See our checklist below to determine who and what is eligible.
Business boost
Federal Treasurer Josh Frydenberg says the scheme was designed to support business sticking with investment they had planned and encouraging them to bring investment forward to support economic growth over the near term.
“The extension will also give businesses additional time to acquire and install assets, as they will now have until the end of the year,” he says.
“Assets can be new or second-hand and could include for example a truck for a delivery business or a tractor for a farming business.”
