With the uncertainty and unpredictability of 2020, there was much speculation around just what this year’s Federal Government budget announcement was going to deliver.
During his address, at 7.30pm on 6th October 2020, the Federal Treasurer – Josh Frydenberg announced among other things, that they will “support businesses with aggregated annual turnover of less than $5 billion by enabling them to deduct the full cost of eligible capital assets acquired from 7.30pm AEDT on October 2020 (Budget night) and first used or installed by 30 June 2022”.
These measures are just the latest in a range of initiatives being rolled out and aimed to stimulate the economy with the hope that small, medium and large business will continue to invest.
Immediate tax deductions can now be claimed for new (and in some cases second hand) asset purchases for most Australian businesses with no dollar limit on claimable assets for businesses with a turnover of up to $5 billion.
This is a significant jump from the previous incentives on offer in March 2020 which offered immediate deductions for assets up to $150,000 for businesses with a turnover of up to $500 million.
The Treasurer said that this “will improve cash flow for qualifying business” and “bring forward new investment to support the economic recovery”.
Check out our below summary to see where you fall in the Instant Asset Write Off Matrix:
To ensure that all capital purchases (including building and asset acquisitions) are accurately and effectively reported for instant write-off or depreciation, we recommend the engagement of a professional quantity surveyor who can work effectively with your tax accountant.
Capital Claims Tax Depreciation are quantity surveyors and tax depreciation experts. To discuss asset reporting and depreciation for your business contact Alex email@example.com or on 1300 922 220.