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Infographic: Everything you need to know about the increased $150k instant asset write-off

Infographic: Is your business eligible for the $150k instant asset write-off?
A significant expansion of the instant asset write-off scheme has made it more useful than ever. Here’s what you need to know.

A move to keep small business moving has drastically boosted incentives for small and medium businesses to invest in new assets.

As part of the Federal Government’s $17.6 billion economic package, announced 12 March 2020, the instant asset write-off threshold has jumped from $30,000 to $150,000.

This means that – until 30 June 2020 – eligible businesses can instantly deduct the cost (the business use portion) of newly-purchased assets worth up to $150,000, rather than claim deductions over a number of years. This can mean significant reductions in a given business’ taxable income and subsequent tax bill.

See our checklist below to determine who and what is eligible.

150k Instant asset write-off checklist

Additional cash flow support

The Federal Government has also promised ‘cash flow boosts’ of between $2,000 and $25,000 for businesses with a turnover of less than $50 million. It is understood that eligible businesses will receive payments equal to half their Business Activity Statements or Instalment Activity Statement from 28 April 2020, with refunds to then be paid within 14 days.

Other measures include deferring some tax payments for up to four months, and wage support for apprentices and trainees.

The Federal Government has also promised $1 billion to support businesses and communities that will feel the economic impacts of the disruption particularly strongly, such as those in tourism, agriculture and education. Specific measures include waiving fees for tourism businesses that operate in Commonwealth National Parks, as well as additional assistance to help businesses identify alternative export markets or supply chains.

At Prospa, we continue to support Australian small businesses. As a participating lender in the Government’s Coronavirus SME Guarantee Scheme, we’re here to help with a range of options. Find out more.

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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