Instant Asset Write-Off and Equipment Finance
Another initiative by the Federal Govt to assist small and medium business during the Coronavirus pandemic saw the instant asset write-off threshold increased from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million).
The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets.
This applies from 12 March 2020 until 30 June 2020, for new or second‑hand assets first used or installed ready for use in this timeframe.
But Can I get Finance
There is no question that the lenders are understandably more cautious given the current climate, but for those businesses who have been able to maintain a solid portion of their trade and profit, it is a great opportunity to not only make an investment for the future of your business but to also take advantage of a very generous tax based incentive at the same time.
Accountplan’s Finance Broker Mick Doyle has access to a dozen specialist asset finance lenders and can help guide you toward a great outcome for your business. Call us on 07 3883 8999 to find out more