The Federal Government has revised the Instant Asset Write-Off scheme, allowing eligible businesses to continue writing off newly purchased assets worth up to $150,000 until 31 December 2020.
VACC, along with its national body, the Motor Trades Association of Australia (MTAA), has welcomed the move (the arrangement was originally due to end on 1 July) and thanks government leaders for listening to industry figures and taking the needs of Australian business owners seriously.
To demonstrate the need for an extension, on behalf of its state bodies, MTAA had provided the Treasurer’s Office, Coronavirus Business Liaison Unit and Australian Tax Office data concerning production, distribution and delivery delays being experienced across several major automotive industries including new car and farm machinery retailing.
Designed to boost cash flow, under the Instant Asset Write-Off scheme eligible business owners can claim an immediate deduction for the business portion of the cost of an asset. As detailed by the Australian Taxation Office, eligibility depends on:
- aggregated turnover
- date asset was purchased
- when asset was first used or installed
- cost of the asset being less than the threshold.
For more information
MTAA media release: Enhanced instant asset write off stimulus extension welcomed
Business.gov.au: Increasing the Instant Asset Write-Off
Australian Taxation Office: Instant asset write-off for eligible businesses