23rd April 2020
With COVID-19 pandemic continuing to impact the world, Australia begins to think about the road to recovery. The Australian Government initially responded by releasing their first Economic Stimulus Package on the 12th March. These measures included support for small to medium sized businesses through greater tax incentives, which are designed to support business investment. As businesses start considering resumption of normal functionality, remember to consider these incentives when you begin planning.
To help understand what is available, we’ve summarised some of the tax incentives being offered to businesses.
The first big impact this stimulus package offers is to allows businesses to write-off assets up to $150,000 until June 30th. Businesses will recognise this is a large jump from last years $30,000 limit.
Businesses can reduce their tax for this financial year by claiming the full cost towards reducing their taxable income. This could result in thousands of dollars saved for this financial year. There is no limit to the amount of assets businesses can claim under this incentive, so long as the cost is not over $150k.
Any business can claim the offer if they have an aggregated annual turnover of less than $500 million. This is valid until the 30th June 2020.
The tax incentive refers to any asset, new or used, that is involved in running a business. DeviceDeal will have specials on business solutions during our upcoming End of Financial Year sales including:
Businesses can deduct 50% of the cost of eligible assets purchased or installed after 12th March 2020 and before 30 June 2021. There is no asset value threshold on this offer. This means that any business with an aggregated turnover of less than $500 million can apply.
In Summary, the increase to the asset write-off threshold to $150k and 50% instant asset depreciation is great news for eligible businesses. Investments that previously fell over the $30k threshold are now much more financially viable.
At DeviceDeal we’re here to discuss solutions for your business requirements, contact us today.
For the latest official information, eligibility and requirements please visit the official ATO website: