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Instant Asset Write-Off Increased

In mid-March, the Morrison Government announced a $17.6 billion stimulus plan to support Australian businesses and offer an immediate boost to the economy during these challenging times.

What does this mean for you as a small or medium business owner?

  • The government increased the Instant Asset Write-Off threshold to $150,000 from $30,000.
  • On 9 June, the program was extended from an end date of 1 July to 31 December 2020. Then in October, in-line with the 20/21 budget announcement, there was a further extension to 30 June 2021.
  • The write-off benefit will now be extended to businesses with a turnover of up to $500 million, up from $50 million before.
  • If you purchase a business vehicle or any income producing asset between 12 March 2020 and 30 June 2021, 100% of the cost can be written-off immediately, providing an instant saving on your acquisition.

What can you claim?

If you were looking to invest in your business, now is the time to bring this forward to benefit from this increased government incentive. For example, business assets that may be able to be immediately written-off are:

  • Vehicles used for work purposes (thresholds apply up to LCT for passenger cars)
  • Trucks and trailers
  • Farming equipment
  • Earthmoving & construction machinery
  • Medical equipment
  • Office furniture or computers
  • Shop fitout fixtures or fittings

Why now is the best time to buy!

  • Cheapest fuel in years
  • Lowest interest rates ever
  • Instant asset write-off benefits
  • Dealerships are offering BIG discounts to move stock

Maximise these new benefits by speaking to the asset finance experts at Platform Direct Finance. We will work with you to find the best lender and finance product for your business.

 

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