$30k Instant Asset Write-off
19 June, 2019 / In Announcements / By Chris Burnett
By Chris Burnett
You may have heard about the $30k instant asset write-off that the Federal Government introduced as part of their 2019-20 budget announcement which is now law and applies to certain purchases made before 30 June 2020.
With the end of the financial year only 11 days away its a good idea to check to see if your business and asset purchases could be eligible for an instant tax write off this year.
To help we’ve put together a checklist of the requirements that your business will need to meet before making a claim. For more information, please speak with us.
| Turnover <$50m | Your business is eligible if it turns over less than $50 million annually. |
| Cost <$30k | An asset is eligible for an instant deduction if it cost less than $30,000. If you are GST registered the $30,000 threshold applies to the GST exclusive amount. |
| Timing | The asset must have been purchased after 7:30pm 2 April 2019 and before 30 June 2020. |
| Condition | The asset can be new or second-hand. |
| Total cost | The $30k threshold applies to the total cost – not just the business portion or the cost after trade-in. |
| Ready to use | The asset must be purchased, installed and be ready to use to be able to claim the deduction. |
| Set | Multiple assets that form part of a set may be considered a single asset. |
| Pool | Assets purchased over $30k can be placed in a small business entity pool. |
| Multiple assets | There is no limit on the number of assets you can buy and claim under the scheme. |
If you are considering purchasing an asset for your business to obtain a tax deduction but are concerned that purchasing the asset could put a strain on your cash flow, perhaps equipment finance could be the answer. Talk to us today about how the $30k instant write off could benefit you and how we can help with the finance.
