How to leverage the instant asset tax write-off
How to leverage the instant asset tax write-off
Positive cash flow is an important factor in every business, however large essential purchases can make that a challenge. The $150,000 Instant Asset Write-Off allows eligible businesses to claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
Eligible businesses with an annual turnover of less than $500 million may be able to claim immediate deductions for new or second-hand assets.
This may apply to assets such as:
- Vehicles
- Computer
- Earthmoving and construction equipment
- Machinery
- Light and heavy commercial vehicles
- Manufacturing and industrial equipment
- Medical and dental equipment
The instant asset write-off can help you to buy more equipment and other assets that will help you become more efficient and effective in business.
Eligibility to use instant asset write-off depends on:
- Your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
- The date you purchased the asset
- When it was first used or installed ready for use
- The cost of each asset being less than the threshold
How to apply
The write-off is applied when you lodge your tax for the relevant year, no further application process is required.
For further information regarding the instant asset write-off, click here
Contact our team today on 1300 4 MORRIS and speak to one of our finance specialists to discuss your options
