The recent federal budget announcement brought with it some good news for Australian businesses with a boost in instant asset write-offs both in terms of the threshold as well as a number of businesses now eligible.
- The threshold for the SME instant asset write-off has increased to $30,000, which is up from $20,000
- Eligible businesses now include those with a turnover of less than $50 million, which is up from $10 million
- The announcement applies to equipment purchased and installed ready for use between 2 April 2019 until 30 June 2020, up to the value of $30,000.
It’s not a government grant and it’s not an injection of cash. But what it does do is allow businesses to reduce their tax paid this year by claiming the full asset write-off in this financial year instead of writing it off over the life of the asset. Tax bills will be lower now, but higher in future years.
To get your own independent advice for your personal or business needs, call Andrew Sutherland at Halidon Hill Finance, for a discussion on 03 7018 3270 or get in touch via email on firstname.lastname@example.org