To Our Valued Clients
We acknowledge that we are facing challenging economic conditions stemming from the current health crisis. When you open the paper or read news online, it often seems like a sea of negative and heartbreaking stories. For many, however, this has been an opportunity to review and innovate their operations, products and services to strengthen their offering and client base. For others, business is continuing full steam ahead and this is fantastic.
One of the best positive stories to emerge in the last few weeks has been the Big boost to the instant asset write-off
The instant asset write-off threshold has been increased from $30,000 to $150,000, and access to the write-off has been expanded to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until June 30, 2020. The instant asset write-off allows businesses to buy large items of capital equipment for their business and to obtain an immediate tax deduction for doing so (rather than depreciating the cost over a number of years, as was previously the case). Provided the cost of each purchase is less than the threshold (now $150,000), the full cost can be written off if the asset is acquired and in use by June 30, 2020. There are also options for assets over $150,000, however terms and conditions differ slightly. Amongst the items small businesses could look to purchase are:
- Trucks, utes and delivery vans;
- Agricultural and earthmoving machinery
- Computer equipment, including laptops, tablets and printers;
- Solar systems for business premises; and
- General Plant, equipment and tools.
If you do have a requirement for new equipment and wish to take advantage of this temporary boost to the Instant Asset Write-Off Limit, we encourage you to speak with your Accountant, and us here at Allied Leasing to assist with your financing requirements. Lenders are still providing funding and we can assist you to meet the deadline. We wish you well and we look forward to hearing from you soon.
The Team at Allied Leasing