It was announced in March that the Australian government would be increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 for eligible assets from the 12th of March to the 30th of June – this end date will now be extended by six months.
It is the latest in a series of announcements of smaller economic stimulus packages, including the $688M package offering grants for the building or renovating of residence to eligible singles or couples.
With an estimate of 3.5M businesses with an annual turnover of less than $500M, therefore being eligible to benefit from the incentive, it is hoped that the majority of them will take advantage of this opportunity.
Now assets will need to be first used or installed for use by 31st of December 2020, increasing from the original 30th of June 2020 cut off. Multiple assets are eligible as long as the cost of each individual asset is less than $150,000 and can also be new or used equipment.
Treasurer of Australia, Josh Frydenberg, said that the extended time frame will help firms invest in assets to support their business as Australia begins to reopen. “They are designed to support business sticking with an investment they had planned, and encouraging them to bring investment forward to support economic growth over the near term,” Frydenberg said in a joint statement with employment minister, Michaelia Cash.
Eligibility criteria can be found on the Australian Tax Office website.
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