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The enhanced instant asset write-off scheme, which was due to expire on 30 June, has now been extended to 31 December.
From 1 January 2021, the threshold will reduce to $1,000 only and will only be available for small businesses with an aggregated turnover of less than $10 million.
Of course, if you do it now, the write-off will be for FY2021. However, the extension will be helpful in that if you are planning to purchase within this financial year, buying before the end of the year may allow you to depreciate the full cost of the asset instantly.
Keep in mind that everyone will get busier towards December. This includes vendors/suppliers (e.g. car dealers), banks/financiers, your business and yourself. So if you plan to buy, plan and do it earlier if possible.
The scheme lets eligible businesses immediately write off assets they buy for less than $150,000.
The threshold applies on a per asset basis, so your business can use it an unlimited number of times, provided each asset costs less than $150,000.
Businesses must have an annual turnover of less than $500 million to participate
Assets can be new or second-hand
If your asset is for commercial and private use, you can only claim the business portion.
Full Details:
As always, please do not hesitate to contact us directly if you need help.
Kind regards,
Kien Phan & Phuong Nguyen.
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