Instant asset write off extended for another 6 months
In March, the government increased the threshold for instant asset write off form $30,000 to $150,000. this was meant to drop back to original threshold of $1,000 from 1 July.
The arrangement has now been extended to 31 December 2020.
What does the instant asset write off mean for you?
– If your (aggregated) turnover is less than $500 million
– And you purchase asset that is available to use before 31 December 2020
– You get to write it off (claim as a deduction) in year 1
– It can be new or second hand asset
Keep in mind that…
– The car depreciation limits still apply
– Saving on tax should not be the only factor when making these decisions… Do you need it? Can you afford it? Will reducing your taxable income substantially affect your borrowing capacity?
If unsure, give us a call.
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