Instant asset write-off incentive extended
Australian businesses with annual turnover up to $500 million are eligible for the tax deduction, designed to back investment in the wake of the COVID-19 crisis.
Federal Member for Capricornia Michelle Landry said the measures were designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the near term.
“The extension will give businesses additional time to acquire and install assets, as they will now have until the end of the year,” she said.
“We have already seen the positive effects of the extension here in Rockhampton with Doblo’s Farmers Market purchasing a new walk-in fridge for $140,000 and instantly writing it off.”
The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.
Assets can be new or second hand and could include for example a truck for a delivery business or a tractor for a farming business.
More information at treasury.gov.au/coronavirus