Claim your Instant Tax Write-Off
ONLY DAYS REMAINING TO TAKE ADVANTAGE OF THE 2019/2020 INSTANT ASSET TAX WRITE-OFF
Have you heard of the Federal Government’s instant asset write-off?
If you haven’t, you're not alone. Below is a quick rundown on the instant asset write-off and whether it’s something you should take advantage of for your business.
What is an instant asset write-off?
An instant asset write-off allows businesses (with an annual turnover of less than $500 million) to claim immediate deductions (up to an amount of $150,000) for new or second-hand plant and equipment asset purchases such as vehicles, tools and office equipment. The assets must first be used, or installed for use, in the income year you’re claiming for.
The amount you can write-off will depend on when the asset was purchased and the associated threshold amount.
Is this a good decision in my situation?
Because of COVID-19 and to help support the Australian economy, the threshold amount for each asset has been increased to $150,000 (up from $30,000) and eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
However, before making any large purchases, we suggest you speak to your accountant or tax professional and assess how the asset will benefit your business and how the purchase may impact on your cash flow or finances in the short term.
Buying office furniture is a great way to take advantage of the instant asset write-off for the 2019/2020 financial year.
Feel free to chat with our staff on 02 9818 4200 if you are interested in finding out more.