Asset Write-off Incentive
Need to make a big purchase for your business? Check out the asset write-off inventive to help businesses make large purchases until 30 June 2020. And this year, we have seen a big value increase from the $30k limit to $150k (heck yes!).
What is it?
Eligible businesses can immediately write off individual assets with a value of up to $150k (an increase from $30k), rather than depreciate over a period of time.
Timing:
If eligible, you will receive this benefit when you lodge your FY20 tax return. This can be done at any point after 30 June 2020.
☝🏻 Our tip:: Building on pre-existing allowances for asset purchases up to $30k, this is a great incentive for businesses that make high value purchases between now and 30 June 2020. While you have to spend $$$ to get the incentive, if you are planning any big purchases in the second half of the year it may be worth bringing them forward.
This is not a black and white decision so you should speak to our accountants to help understand the cash flow implications of doing so and whether it’s worthwhile.