Taxation incentives

This page is continuously updated. Last Update 4 September 2020. 

 

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Instant asset write-off 

Full summary here 

 

Benefit: 

The instant asset write-off scheme has been extended to $150,000 until 31 December 2020.   

The instant asset write-off scheme allows your business to claim 100% of the value of asset purchases (new or second hand up to the value of $150k) as a depreciation expense. This allows your business to lower its taxable income during the 2020 and 2021 financial year.  

 

Am I eligible? 

Businesses will be eligible for tax benefits if they turnover less than $500 million.   

From 1 July 2020, the instant asset write-off scheme will only be available for small businesses with a turnover of less than $10 million. 

 

How to access

Depreciation benefits will be made available for all new or second-hand assets purchased and installed between 12 March 2020 and 30 June 2020. 

It is advisable to get in contact with your accountant or financial consultant for advice on how/ if this will benefit your business. 

 

Further Depreciation Benefits (backing business investment)

Full summary here.

Benefit 

For assets purchased above the instant asset write of threshold ($150,000), there has been an additional extension of the standard rate.  

The new effective depreciation rate for assets purchased between 12 March 2020 and 30 June 2021 will be 65%* of its value.   

*30% and a further 50% of the remaining value.  

 

Am I eligible?

Businesses will be eligible for tax benefits if they turnover less than $500 million 

 

How to access

Depreciation benefits will be made available for all new or second-hand assets purchased and installed between 12 March 2020 and 30 June 2021. 

It is advisable to get in contact with your accountant or financial consultant for advice on how/ if this will benefit your business.