With the Coronavirus pandemic continuing to impact the world, the Australian Government has responded by releasing their first Economic Stimulus Package on the 12th March. The latest measures include support for small to medium sized businesses through greater tax incentives, which are designed to support business investment.
To make it easier, we’ve explained some of the tax incentives being offered to businesses below.
$150k Instant Asset Write Off
From now until 30th June 2020, small to medium sized businesses can instantly write-off assets up to $150,000, which is a significant increase from last years’ $30,000 limit.
Businesses can reduce their tax for this financial year by claiming the full cost towards reducing their taxable income. This could result in thousands of dollars saved for this financial year.
Furthermore, there is no limit to the amount of assets businesses can claim under this incentive. Businesses can purchase multiple assets, the only criteria is that an individual asset must not cost more than $150k.
Does my Business Apply for this Tax Incentive?
Any business can claim the offer if they have an aggregated annual turnover of less than $500 million. This is valid until the 30th June 2020.
What Type of Assets Dose this Apply to?
The tax incentive refers to any asset, new or used, that is involved in running a business. This includes assets like forklifts and access equipment.
50% Instant Depreciation for Assets
This is a limited time 15-month investment incentive allowing businesses to accelerate depreciation deductions.
Businesses can deduct 50% of the cost of eligible assets purchased or installed after 12th March 2020 and before 30 June 2021. There is no asset value threshold on this offer. This means that any business with an aggregated turnover of less than $500 million can apply.
New Equipment Offers
The increase to the asset write-off threshold to $150k and 50% instant asset deprecation is good news for business. This allows businesses to invest in a greater variety of assets that may have fallen over the Government’s previous $30k threshold. United has an extensive range of forklift and access equipment floor stock available that are eligible for the above tax incentives. The new equipment available across our branches include;