The Australian Government’s Instant Asset Write-Off and Temporary Full Expensing schemes allows businesses to immediately claim the business portion of the cost of new and second-hand equipment purchased and installed on their next tax returns.
This means many workshop owners who purchase and install equipment in the lead up to the end of the financial year, will not be left out of pocket for long with their expenses being reimbursed as a tax deduction.
To help Members take advantage of these incentives available Capricorn Finance is available for many Members to get the new equipment they need.
Find out what you're eligible for
Instant asset write off
An instant asset write-off threshold for eligible businesses was increased from $30,000 to $150,000. Eligibility has also been extended to businesses with an aggregated turnover of less than $500 million (up from $50 million). These rules apply in relation to assets first used or installed ready for use between 12 March 2020 and 30 June 2021, and purchased by 31 December 2020.
The Government has also introduced temporary full expensing for some assets until June 2022.
The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets.
For more information call 1800 327 437