$30k Instant Asset Write-off

By Chris Burnett

You may have heard about the $30k instant asset write-off that the Federal Government introduced as part of their 2019-20 budget announcement which is now law and applies to certain purchases made before 30 June 2020.

With the end of the financial year only 11 days away its a good idea to check to see if your business and asset purchases could be eligible for an instant tax write off this year.

To help we’ve put together a checklist of the requirements that your business will need to meet before making a claim. For more information, please speak with us.

Turnover <$50mYour business is eligible if it turns over less than $50 million annually.
Cost <$30kAn asset is eligible for an instant deduction if it cost less than $30,000.
If you are GST registered the $30,000 threshold applies to the GST
exclusive amount.
TimingThe asset must have been purchased after 7:30pm 2 April 2019 and
before 30 June 2020.
ConditionThe asset can be new or second-hand.
Total costThe $30k threshold applies to the total cost – not just the business
portion or the cost after trade-in.
Ready to useThe asset must be purchased, installed and be ready to use to be able
to claim the deduction.
SetMultiple assets that form part of a set may be considered a single asset.
PoolAssets purchased over $30k can be placed in a small business entity pool.
Multiple assetsThere is no limit on the number of assets you can buy and claim under
the scheme.

If you are considering purchasing an asset for your business to obtain a tax deduction but are concerned that purchasing the asset could put a strain on your cash flow, perhaps equipment finance could be the answer. Talk to us today about how the $30k instant write off could benefit you and how we can help with the finance.