On June 9, 2020 the government has announced an extension to the increased instant asset write off until Dec 31.More details can be found here: Instant asset write-off expansion
In response to the Coronavirus crisis, the Federal Government has outlined new measures in a number of stimulus packages worth over $100 billion with more to follow. Part of the initial $18 billion package includes support for business investment. Here’s why the stimulus package is good news for your business and how you can get the most out of it.
There’s been an increase in the instant asset write-off (IAWO)
The instant asset write-off threshold has been increased from $30,000 to $150,000. The federal government has also expanded access to which businesses can access the scheme. Taking it from businesses with an aggregated annual turnover of less than $50 million, to now businesses with an aggregated annual turnover of less than $500 million.
The government wants you to act quickly on this business investment opportunity by limiting the offer until 30 June 2020.
Your asset needs to be:
- New, or second-hand, and
- First used or installed ready for use within this limited timeframe.
It’s predicted that the IAWO will revert back to $1,000 for small businesses (that have a turnover of less than $10 million) from 1 July 2020.
What does this mean for you
If you want to save money and take advantage of this generous stimulus incentive you need to act now.
Business assets worth up to $150,000, which will be ready to be used by 30 June 2020, can be written off this financial year, instead of depreciated over the life of the asset. Or, in other words, office fit outs ready to be used or installed by 30 June 2020 can be written-off this financial year.
This means you get to enjoy:
- The benefit of the investment now
- Improve the aesthetics and function of your office space now
- A tax incentive on your tax return
- Improved cashflow with the savings created by the full depreciation write-off now, instead of over the life of the fit out
It might also be an ideal time for an office fit out if your staff are working from home and socially isolating.
A final thought
We understand that everything might feel a little chaotic right now. While this federal government investment opportunity might be the last thing on your mind, it is available for a very short timeframe. If you’d like some help and information on what we can do for your business over the next few weeks get in touch with our friendly team today.