Instant asset write-off expansion
On 24 March 2020, the Coronavirus Economic Response Package Omnibus Bill 2020 received Royal Assent. This forms part of the government’s measures to support businesses to withstand and recover from the economic impact of COVID-19.
This package includes increasing the instant asset write-off.
From 12 March 2020 until 30 June 2020 the instant asset write-off:
- threshold amount is $150,000 (up from $30,000)
- eligibility has been expanded to businesses with an aggregated turnover of less than $500 million (up from $50 million).
Businesses can claim an immediate deduction (business portion only) for multiple assets, new or second-hand, provided each asset costs less than $150,000.
Different eligibility criteria and thresholds apply to assets purchased and used, or installed ready for use, prior to 12 March 2020.
Alternatively, businesses may be able to choose to use accelerated depreciation for certain new depreciating assets, if the asset costs less than $150,000.
The general depreciation rules apply to assets costing $150,000 or more.
Finance Circle Group recommends that customer seek advice from their accountants and ensure that their cash flow will be able to afford further loan payments in all circumstances.
Finance Circle Group
Nirosh Weerasinghe 0401 976 188
Chamila Suraweera 0402 927 220
Shane Cross 0421 427 272
info@financecirclegroup.com.au
