Don’t delay your next equipment purchase. Your business could now write-off any eligible expense immediately, at any cost, until June 2022 in an expansion of the Government’s Instant Asset Write-off scheme.
The measure will apply to eligible assets purchased from 7:30pm (AEDT) on 6 October 2020 and first used or installed by 30 June 2022. It applies to businesses with an aggregated annual turnover of up to $5b.
This scheme is referred to as ‘temporary full expensing’. Full expensing in the first year of use will apply to new, depreciable assets and the cost of improvements to existing eligible assets.
For businesses with an aggregated annual turnover of <$50m, full expensing also applies to second-hand assets. Businesses with an aggregated annual turnover between $50m & $500m can still deduct the full cost of eligible second-hand assets costing less than $150,000, that are purchased by 31 December 2020. Businesses holding assets that are eligible for the enhanced $150,000 Instant Asset Write-off will have an extra six months, until 30 June 2021, to first use or install those assets.
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The information provided here is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Please speak to your accountant or tax agent for specific tax advice.