If you're looking to invest in a quality storage asset for your business then now might be the right time thanks to the government’s instant asset write–off scheme.
The threshold for asset write-offs was lifted on March 12, 2020, from $30,000 to $150,000 to include eligible asset purchases made between 12 March 2020 and 30 June 2020.
Here's what you need to know:
Under instant asset write-off eligible businesses can:
- Immediately write-off the cost of each asset that cost less than the threshold.
- Claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.
Changes from 12 March 2020
From 12 March 2020 until 30 June 2020 the instant asset write-off:
- Eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
- Threshold amount for each asset is $150,000 (up from $30,000).
As always, check with your accountant or tax advisor to confirm your eligibility.
To learn more, visit the ATO website: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/