Increased tax incentives to purchase assets now available
In case you are not aware the Instant Asset Write Off was significantly enhanced in last weeks Federal Budget.
This tax benefit now allows eligible businesses to purchase new and used assets (including multiple assets), and claim the full cost as an instant tax deduction for each asset purchased.
With a number of suppliers currently experiencing a shortage of stock and delivery delays if you are considering the purchase of equipment or a vehicle before Christmas, now might be the ideal time to discuss your finance requirements.
Eligible businesses can claim a tax deduction for the full cost of eligible capital assets, acquired from 7:30pm AEDT on 6 October 2020 (Budget night) and first used or installed by 30 June 2022. The measures are summarised in the table below:
|Aggregated annual turnover |
less than $50 million
|Aggregated annual turnover |
less than $5 billion
|Tax Deduction||Full cost of eligible capital assets in the year of first use for:|
– new and second hand depreciable assets, and
– the cost of improvements to existing eligible assets.
|Full cost of eligible capital assets in the year of first use for:|
new depreciable assets, and
the cost of improvements to existing eligible assets.
|Acquired from||7:30pm AEDT on 6 October 2020 (Budget night)||7:30pm AEDT on 6 October 2020 (Budget night)|
|First used or installed by||30 June 2022||30 June 2022|
Businesses with aggregated annual turnover between $50 million and $500 million can still deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by 31 December 2020 under the existing instant asset write-off.
Under the Budget measure, those eligible businesses that hold assets eligible for the $150,000 instant asset write-off will have an extra six months until 30 June 2021, to first use or install those assets.
How we can help
Now more than ever we want to provide small business owners with the support they need. We continue to responsibly add new customers and re-finance existing ones.
Like all Australians, we’re closely monitoring the novel coronavirus (COVID-19) situation.
At Commercial Point Finance, we provide support to good businesses that require funds for growth or cash flow assistance. During a time like this, our role within the business community becomes more important than ever.
While the full impact of COVID-19 remains unclear, we’re sensitive to the fact that businesses are facing a particularly challenging time. While we’re in uncharted territory, we remain committed to our customers and partners, and our core value of backing good business.
We’re here to help and support your business during this challenging time. If you want to discuss your individual circumstances, our team is available Monday to Friday from 8am to 7pm AEDST, via phone or email.
Where to find helpful information
If you’ve been affected, you may be able to also claim financial assistance from the government. Check here to see if you’re eligible to claim.
The below details banks’ financial hardship contact details for a few lenders: Australian Banking Association – Financial Difficulty.
Check out our article COVID- 19 Instant Asset Write-Off for more information on how you can use the instant asset write-off.