150K Instant Asset Write Off – What you need to know!
With record low interest rates, the big banks are doing unbelievable equipment finance deals. This has been backed by the Australian Government’s $150,000 instant asset write off. Considering that this was previously limited to a maximum of $30,000 – it’s a huge incentive for businesses to get things rolling again.
In terms of eligibility, the previous limit of $50 million in aggregated turnover has also been expanded to cover businesses turning over less than $500 million. This huge jump from the previous threshold will also no doubt encourage more businesses from all industries to stimulate the economy during the era of Covid-19.
Federal MP and Treasurer Josh Frydenburg commented last week that the instant asset write off was designed to support over 3.5 million businesses in Australia.
“These measures are designed to support businesses sticking with investment as they had planned, and are encouraging them to bring investment forward to support economic growth over the near term. The instant asset write-off also helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure.”
In accordance with the Australian Tax Office, the instant asset write off can be used for:
- Multiple assets, as long as the cost of each individual asset is less than the applicable threshold
- New and second hand assets
With the 2020 end of financial year looming and under two weeks away, there’s no better time to get your business finances organised – along with any potential new additions that may be long overdue.
Get in touch with us at Madd Loans for a free quote to see how we can best apply these incentives to your business. Whether you’re in need of a new work ute, tractor for the farm or even heavy machinery, some of our specialty loan services on offer include:
- Car loans
- Truck loans
- General equipment loans
Please connect with us by requesting a call back, live chat with us online or simply schedule a free consultation. At Madd Loans, we work around you and your needs – we pride ourselves on our service, customer satisfaction and ultimately getting the very best deals available for our clients.