While the federal government recently extended the scheme to 31 December 2020, those keen to claim the deductions sooner rather than later will want to beat the June 30 EOFY deadline.
A few months back the federal government increased the instant asset write-off threshold from $30,000 to a whopping $150,000 as part of its coronavirus economic stimulus package.
Under the scheme, businesses with an annual turnover of up to $500 million can immediately write off the cost of assets such as vehicles, tools, equipment and – thanks to the recent $150,000 threshold increase – heavy vehicles, tractors and machinery.
Basically the scheme allows you to immediately claim all the tax deductions you would have claimed over the life of the asset.
This can help with your cash flow, as getting the cash back sooner means you can re-inject it straight back into other parts of your business.
As mentioned above, the end-of-financial-year is fast approaching.
The good news is that even if you get the ball rolling on it now, and still miss the deadline by a day or two, you’ll have peace of mind knowing that you’ll qualify next financial year under the 31 December deadline.
So if you’d like help obtaining finance for an asset then please get in touch – we can run you through more details of the scheme and present you with financing options that are well suited to your business’s needs now, and into the future.
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