The Federal Government has today announced that Instant Asset Write-Off which was due to expire on 30th June, has been extended to 31st December 2020!
To qualify, the assets must be used for business purposes and be installed by 31st December 2020!
How the Instant Asset Write Off works
The Instant Asset Write Off provides a window of opportunity for business owners to acquire the assets they need and enjoy the tax benefits delivered by fully writing off the asset in the year the asset is purchased.
Key elements include:
- It is available to all businesses with an aggregated turnover of less than $500m. (The vast majority of businesses in Australia)
- Businesses can purchase and write off multiple eligible assets up to $150k each (vehicles, plant & equipment, office furniture, computers, etc.)
- The $150k limit is available for each individual asset and therefore multiple assets (totalling more than $150k can be claimed under this arrangement
- It includes both new and used equipment
Asset Ownership & the Right Finance Product!
To enjoy the tax benefits of the Instant Asset Write Off, ownership of the asset is critical!
If the asset needs to be financed – care is needed to ensure the right product is chosen so that ownership rests with the business and not the financier.
If you rent or lease the business asset, you will not be able to take advantage of the Instant Asset Write Off scheme because ownership of the asset will rest with the financier.
The Asset Finance Broker Advantage
If you are looking to take advantage of the Instant Asset Write Off initiative using an Asset Finance Broker is good business sense.
The key advantages include:
- Choice – I have access to large panel of lenders that includes the major Banks
- Leverage – Having multiple Lenders competing for your business
- Fast Approval – subject to you providing the necessary information
If you would like to learn more, don’t hesitate to give me a call!
