All ABN holders with a turnover of up to $5 billion will be able to immediately deduct the full cost of eligible depreciable assets from 6 October 2020 through to 30 June 2022.
$150,000 Instant Asset Write Off
- Any eligible asset (vehicles, machinery etc) with a purchase price of $150,000 or less (excluding GST) acquired from March 12th to Dec 31st, 2020.
- Asset can be NEW or USED (including private sales).
- The $150,000 limit is available for each individual asset and therefore multiple assets (totalling more than $150,000) can be claimed under this arrangement.
- There is NO LIMIT to the number of assets acquired under this initiative.
- Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative).
- FAST TRACK (No Financials) Finance is available on most assets across a broad range of Financiers.
- This initiative is ONLY available until Dec 31, 2020 and as such is a very small window of opportunity.
For assets first used or installed ready for use between 12 March 2020 until 30 June 2021, and purchased by 31 December 2020, the instant asset write-off:
- threshold amount for each asset is $150,000 (up from $30,000)
- eligibility extends to businesses with an aggregated turnover of less than $500 million (up from $50 million).
From 7.30pm AEDT on 6 October 2020 until 30 June 2022, temporary full expensing allows a deduction for:
- the business portion of the cost of new eligible depreciating assets for businesses with an aggregated turnover under $5 billion or for corporate tax entities that satisfy the alternative test
- the business portion of the cost of eligible second-hand assets for businesses with an aggregated turnover under $50 million
- the balance of a small business pool at the end of each income year in this period for businesses with an aggregated turnover under $10 million.
For more information visit – https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/
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