In March, to help small to medium sized businesses during the pandemic, the Federal Government increased the instant asset write-off threshold to $150,000 from $30,000 and opened the scheme up to businesses with turnovers up to $500 million. This scheme was set to end on 30 June 2020 however, it was announced yesterday that it has been extended until 31 December 2020.
It is hoped this will continue to encourage businesses to spend on equipment and other investments, as they can claim a tax break for what they spend.
The scheme can be applied to multiple assets worth up to $150,000. This means that large purchases such as trucks and tractors are eligible.
As reported in the Guardian yesterday, the government estimates that as many as 3.5m businesses have an annual turnover of less than $500m and are therefore eligible to benefit from the extension of the instant asset write-off.
As WA opens back up for business, we are working closely with our business clients to ensure you are aware of all stimulus packages available to help you get back on track.
If you are worried about not being able to make tax contributions due to Coronavirus, it is important that you speak to your Taxpro accountant, so they can look at your requirements on a case-by-case basis.
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