Our Federal Government has been adjusting the guidelines around the writing-off of assets since the advent of Covid-19. Further changes have just been announced in the Federal Budget 2020.
The instant asset write-off threshold was increased from $30,000 to $150,000 on March 12, 2020. Access was expanded to include businesses with a turnover of less than $500 million.
The threshold applies on a per asset basis. Eligible businesses can instantly write-off multiple assets, each costing less than $150,000. Originally, you had to get your business done by June 30, 2020. Then, it was extended to December 31, 2020. Now, as part of the 2020‑21 Budget, businesses will have until June 30 2021 to first use or install these assets. By assets, we mean cars, trucks, utes, forklifts and a wide range of equipment and goods.
A further refinement, Temporary Full Expensing, will still need to be passed in Parliament. And things are getting more complicated now. You’ll definitely want to talk with your accountant about this one.
This remains an ideal time to update vehicles and equipment. Future Value Finance’s partners have the experience to guide you through finance.