Good News For Small Business With Instant Asset Write-Off Scheme To Be Extended

Good News For Small Business With Instant Asset Write-Off Scheme To Be Extended

Recently that the Prime Minister, Scott Morrison announced an intended extension of the instant asset write-off scheme is being extended through to 30 June 2020 and an increase in  the current threshold of $20,000 increased to $25,000.

What is the Instant Asset Write-Off Scheme?

Initially, the Instant Asset Write-Off allowed for businesses with an annual turnover of less than $10 million to write-off business assets worth up to or less than $20,000, bought and used or installed ready for use.  This applied irrespective of whether the asset was purchased new or second-hand. This would then allow for business owners to claim a deduction for that asset in the same financial income year as the asset was purchased.

What does The Extension Mean?

In the words of “Sco-Mo” himself, it means that “Businesses can go out and invest today, whether it’s a vehicle, a piece of plant or equipment, all of it up to $30,000 and immediately write-down the asset”.

 

The legislation is expected to be passed through parliament in February 2012.

 

 

 

Business Accounting And Advisory
Business Accounting And Advisory
PrimeAccounting work with private business owners keeping them on track with accounting and advisory services to improve business performance.

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