Heard about the Instant Asset Write-Off but not sure if your business is eligible?
We have summarised the eligibilty criteria, benefits and some fast facts to help your business benefit from this SME investment stimulus program.
In October 2020, the federal government made enhancements to the Instant Asset Write-Off (IAWO) program including removing the $150,000 limit on purchases. In the May Federal Budget 2020-21 announcement, the program was then extended through to 2023.
Here are some Fast Facts about IAWO:
- There’s no $$ limit on the cost of the new business asset purchased*
- Write-off claims can be made in the year which the asset is used or installed
- You can claim multiple new eligible assets of any dollar value, and eligible improvements on new and existing assets
- Financed equipment and cars can still claim a deduction for the cost of eligible items
- Program end date extended from 30 June 2022 to 30 June 2023
Previously businesses with an aggregated turnover of less than $500 million were eligible. Now businesses with an aggregated turnover of up to $5 billion can apply under the new program. *
The IAWO provides you the perfect opportunity to upgrade your business vehicles and claim the deduction this financial year. With current national stock shortages on popular makes and models, you need to act fast to receive delivery of your vehicle before June 30. We recommend getting pre-approval on your finance and ordering now to avoid disappointment.
Whether you are in manufacturing, warehousing, mining, agriculture, logistics or construction, now is the perfect time to upgrade your capital equipment and claim a full tax benefit in your 20/21 tax return.
How do you claim the instant asset write-off?
If you buy an asset that comes under the threshold amount, you can claim the business portion of the asset’s use in your tax return for that financial year.
Before making any large purchases, we suggest you speak to your accountant or tax professional to confirm if financing business vehicles, plant and equipment could help to maximise your tax deductions and reduce tax payments this financial year.
Maximise this government business stimulus by speaking to the asset finance experts at Platform Direct Finance today. We will work with you to find the best lender and finance product for the equipment you need to grow your business.
Get an instant repayment quote today.
*We recommend you speak to your accountant in the first instance. The instant asset write-off is limited to the business portion of the car limit for the relevant income tax year. Thresholds apply up to the Luxury Car Tax threshold limit. From 1 July 2020 the LCT threshold increased to $ $68,740. The LCT threshold for fuel efficient cars will increase to $77,565 for the 2020–21 financial year. Remember, the LCT value of a car generally includes, the value of any parts, accessories or attachments supplied or imported at the same time as the car.