Tax incentives for Small Business have been extended again. This extends out the current 30 June 2020 timeline out to 31 December 2020.
The instant asset write-off for business was previously extended and increased to $150,000. The incentive still includes businesses with an aggregated turnover of less than $500 million (up from $50 million).
For investments of $150,000 or more, businesses can deduct 50% of the cost of the asset cost in the first financial year of service, providing it is installed before June 30, 2021.
Your business can claim a one-off tax deduction on individual asset for the business portion of each asset (new or second hand) purchased or installed. It helps businesses that are planning to invest in vehicles and equipment between now and 30 June, 2020.
There are a small number of assets that are excluded. For motor vehicle that are used in your business, the instant asset write-off is limited to the business portion of the car limit of $57,581.
This initiative complements the recent reduction to the company tax rate for eligible businesses too.
A reminder that this is a tax deduction, not a rebate. As always, you should still ensure that the Assets being acquired are needed in your business.
Despite a recent rise in the wholesale cost of funds, interest rates for funding equipment purchases remain competitive. Credit appetite is a challenge for some lenders, but we can assist with working this through with you.
This includes vehicles and most other equipment that is utilised in your business.
Contact us if you would like to find out more.
W - www.mcpfinancial.com.au
P - (03) 9620 2001