Instant Asset Write-Off tax boost extended for another six months amid coronavirus pandemic

Businesses making up to $500 million per year will be allowed to continue writing off newly purchased assets worth up to $150,000 under an extended scheme designed to boost cash flow.

In March, the Federal Government massively expanded the scope of the Instant Asset Write-Off scheme in the early stages of the coronavirus economic shock.

The scheme changed from allowing businesses making $50 million per year to write off purchases up to $30,000, to businesses making $500 million per year being allowed to deduct purchases worth up to $150,000.

Yesterday the Treasurer Josh Frydenberg said that arrangement, which was due to end on July 1, would remain in place until the end of the year.

 

Key points:

  • The new rules for the Instant Asset Write-Off scheme extended to the end of the year
  • Eligible businesses can deduct the cost of assets worth up to $150,000
  • The scheme will help businesses as they recover from the coronavirus crisis

 

“We do know that there are businesses that are ready to invest right now,” he said.

“When the restrictions are eased and people are back at work, our cafes and restaurants will be busy.

“Our hotels will have occupants again and our businesses will be able to export and import again, and they need the equipment and they need the machinery.”

Without the scheme, businesses would have to deduct the depreciation of their assets over several tax returns.

But with the scheme in place, eligible businesses can deduct the full cost of purchases up to $150,000 from the amount of tax they pay in the financial year the asset is purchased.

If you need assistance, just call Caveo Partners (08) 8201 8333 and speak with our experienced Finance Adviser Jeff Clarke to help you with your needs.

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