Due to the current economic and financial situation brought on by Covid-19, the Federal Government has extended the Instant Asset Write-Off to the value of $150,000 until 31st December 2020 for businesses.
The instant asset write-off can be used for :
- Multiple assets as long as the cost of each individual asset is less than the relevant threshold
- New and second-hand assets.
The write-off cannot be used for assets that are excluded from the simplified depreciation rules. The instant asset write-off eligibility criteria and threshold have also changed over time. You may need to check your business’s eligibility and apply the correct threshold amount. This depends on when the asset was purchased, first used or installed and ready-for-use.
From 12th March 2020 until 31st December 2020, the instant asset write-off :
- has a threshold amount for each asset of $150,000 (up from $30,000)
- has its eligibility expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
If you are looking to replace or purchase any new equipment, Flakus and Associates has access to equipment financiers to meet your requirements. Contact us today to find out what your options are and how to leverage on the many available incentives.