Business NSW Central Coast has welcomed the news that the Federal will extend the $150,000 instant asset write-off for six months to December 31.
Member for Robertson, Lucy Wicks, said Central Coast businesses with an annual turnover of less than $500M would be able to take advantage of the extended timeframe to invest in assets to support their business as the economy reopens and coronavirus health restrictions continue to be eased.
“This announcement will help the many small and medium businesses across the Central Coast, who have planned to upgrade or purchase additional equipment to support and further enhance their business as restrictions begin to ease,” Wicks said.
“These measures will support over 3.5 million businesses nationally, employing more than 9.7 million employees.
“The instant asset write-off also helps to improve business cash flow by bringing forward tax deductions for eligible expenditure.
“The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.
“This extension is great news for local businesses, giving them additional time to acquire and install assets, as they will now have until the end of the year.
“Assets can be new or second hand and could include, for example, an additional coffee machine for a busy cafe, a truck or car for a tradesman or a commercial oven in a restaurant or an updated computer for a retail space.”
Business NSW is encouraging locals to capitalise on the move.
“Rather than having the asset write-off reduce to $1,000 on July 1, the Federal Government has extended the increased instant asset write-off, keeping the write-off amount at $150,000 encouraging businesses to invest in equipment and technology” Regional Director, Paula Martin, said.
“Instead of having assets depreciate over several years, businesses are now able to write off the depreciation immediately rather than over a longer period of time.
“This means local businesses with a turnover less than $500M can purchase from local providers, boost the economy, increase productivity and get tax relief.
“With the lifting of restrictions, we will start to see more optimism and opportunities for business to implement their Covid-19 recovery plans, retooling and potentially pivoting to a new offering.
“As we have quickly adapted to remote workplaces, a business may want to use this program to provide each employee their own laptops to continue working remotely or even introduce a centralised computer system for e-commerce, invoicing and digital receipts.
“Most tangible assets that decline over time are eligible, including motor vehicles up to $57,581.
“Among the excluded assets are trading stock items, land, non-farming buildings, and capital works.
“The Australian Tax Office (ATO) has confirmed this new threshold of $150,000 [only] applies to depreciating assets first used or installed between March 12 and December 31, 2020.
“The next month is the perfect opportunity for business to maximise financing opportunities and contribute back to their local community.’ Martin said.
Media releases, Jun 10
Member for Robertson, Lucy Wicks and Business NSW Central Coast Regional Director, Paula Martin