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Infographic: Is your business eligible for the $150k instant asset write-off?

Infographic: Is your business eligible for the $150k instant asset write-off?
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.

Is your business eligible for the $150k instant asset write-off scheme?

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.”

If you want to take advantage of the instant asset write-off scheme but cash flow is currently an issue, a Prospa Small Business Loan might be able to help.


The information in this post is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.

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