Thanks to an extension to the instant asset write off scheme, businesses all over Australia are set to benefit this EOFY. And with thresholds increased from $20,000 to $30,000, there’s never been a better time to invest in your business. Here’s what’s on offer and why the lead up to tax time is the best time to buy.
A three-tier scheme
The write-off scheme now consists of three tiers with an expanded eligibility for larger businesses. Here’s the breakdown:
The first tier covers depreciable assets acquired before 29 January 2019, with a threshold limit of $20,000.
Tier two has a slightly higher threshold of $25,000 and covers assets first used or installed ready to use between 29 January 2019 and 2 April 2019, up until the scheme cut-off date of 30 June 2020.
The third tier increases the threshold again to $30,000 for assets first used and installed between 2 April 2019 and 30 June 2020.
The scheme was previously reserved for smaller businesses turning over less than $10 million a year, but has been widened to include those turning over less than $50 million per year. Eligible businesses will be able to claim the write-off every time they purchase an asset under the applicable threshold cap.
What do the changes mean for you?
It’s pretty simple – buy an eligible asset under tier 1, 2 or 3 and you can immediately write the purchase off on tax (there are of course some conditions, so check out the ATO’s website for the full story). So whether you need a car, ute or business equipment, from now until June 30 is a great time to buy.
Ready to invest in your business?
We’d love to help you out. We can help you arrange finance for the purchase of all kinds of business equipment, from small ticket items like phones and computers, right through to the big stuff like vehicles and heavy machinery. To explore your options, give the Platform Direct Finance team a call on 1300 554 553.
For more information speak to your accountant or visit the ATO website.