The Morrison Government has recently extended the $150K instant asset write-off until the end of this year. The scheme is designed to help stimulate the Australian economy and improve the cashflow positioning of business.
What is the $150K Instant Asset Write-Off?
This new scheme allows businesses to immediately deduct the full cost of assets up to $150K instant asset write-off in the financial year of the purchase. Treasurer, Josh Frydenberg, announced that businesses will be able to make purchases up to a value of $150K “as many times as they want and then write them off”. Businesses with an annual turnover of up to $500 million will be eligible. Previously it was available to businesses with a turnover of up to $50 million. These write-offs are available multiple times and the equipment can be new or used. Depreciation has also changed under this new scheme. Full depreciation can be deducted in the financial year of purchase rather than over several financial years. These adjustments by our Government are added bonuses to further assist Australia’s economic recovery from COVID-19.
Will Finance, a finance broker based in Brisbane supports the new scheme. “This is a great opportunity for Australian business to not only help stimulate our economy but also an opportune time for Australian business to evolve with more effective and efficient equipment. This scheme will motivate Australian business to overview how they do things and think about the latest technology and equipment available for them to improve their profitability and obtain more work.”
Consultation with your accountant is essential to receive up-to-date advice for these and any other business entitlement. Finance brokers agree that this should assist businesses with the COVID-19 economic recovery.
Benefits of Financing Business Equipment
With finance being at an all-time cheap, along with the many tax benefits and the new $150K Instant Asset Write-Off scheme, it has never been a better time for businesses to utilise equipment finance. Equipment finance gives businesses the opportunity to purchase the assets whilst maintaining and preserving cashflow and capital. Equipment loans are also set on fixed rates which gives the business certainty of what to expect in terms of repayments. Equipment loans also known as chattel mortgages have the ability to structure repayments in line with the customers cashflow requirements. Every business is unique and needs professional accountant advice for tax benefits.
Will Finance lends to a diverse range of businesses – from kitchen and office fit outs, cars, trucks, vans, food processing to heavy duty mining and agricultural equipment. Will Finance specialises in equipment finance. It is estimated that the $150K instant asset write-off extension could help over 3.5 million businesses in Australia. For more information surrounding the scheme contact Will Finance.