Well believe it or not the end of financial year is just around the corner. With everyone in lockdown and isolation, and before that the devastating bushfires and floods in some parts, 2020 has been a year like no other.
COVID-19 has affected the economy and everyone’s day to day living. Our focus this year has been not only on keeping each other safe but also trying to keep our jobs and our businesses afloat. With the introduction of stimulus packages from the Government to assist, this year is arguably one of the most important for you to take advantage of much needed tax incentives.
The instant asset write off has been extended to assets up to $150,000, an increase from the original threshold of $30,000. The increased threshold amount is only available up to 30 June this year. As the threshold applies on a per asset basis it allows eligible businesses to immediately write-off multiple assets allowing your business to claim an upfront deduction for depreciating assets this financial year.
For any assets that fall outside of the instant asset write off threshold, accelerated depreciation deductions will apply. Businesses with a turnover of $500 million or less can deduct 50% of the cost of the asset in the year of purchase. This is in addition to the normal depreciation deductions that apply.
This deduction encapsulates all asset purchases over & above the $150,000 already covered in the instant write off. The accelerated depreciation will be available from 12 March 2020 to 30 June 2021 and will bring forward deductions that would otherwise be claimed in later years.
If your business requires an asset, funding it can be a good option and highly effective way to preserve your cashflow necessary in today’s economic environment. To take advantage of these stimulus packages contact a lending advisor from Partners Wealth Group today on 1800 333 143 to see how we can assist with getting your approval in place.
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