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Heard about the Instant Asset Write-Off but not sure if your business is eligible?
We have summarised the eligibility criteria, benefits and some fast facts to help your business benefit from this SME investment stimulus program before it ends on 30th June 2023.
In October 2020, the federal government made enhancements to the Instant Asset Write-Off (IAWO) program including removing the $150,000 limit on purchases. In the May Federal Budget 2020-21 announcement, the program was then extended through to 2023.
Fast facts about IAWO:
- There’s no $ limit on the cost of the new business asset purchased
- Write-off claims can be made in the year which the asset is used or installed
- You can claim multiple new eligible assets of any dollar value, and eligible improvements on new and existing assets
- Financed equipment and cars can still claim a deduction for the cost of eligible items
- Program end date extended to 30 June 2023
Is your business eligible?
Previously businesses with an aggregated revenue of less than $500 million were eligible. Now businesses with an aggregated revenue of up to $5 billion can apply under the new program. *
Business Vehicles
The IAWO provides you the perfect opportunity to upgrade your business vehicles and claim the deduction this financial year. With current national stock shortages on popular makes and models, you need to act fast to receive delivery of your vehicle before June 30. We recommend getting pre-approval on your finance and ordering now to avoid disappointment.
Business Equipment
Whether you are in manufacturing, warehousing, mining, agriculture, logistics or construction, now is the perfect time to upgrade your capital equipment and claim a full tax benefit in your 22/23 tax return.
How do you claim the instant asset write-off?
If you buy an asset that comes under the threshold amount, you can claim the business portion of the asset’s use in your tax return for that financial year.
Before making any large purchases, we suggest you speak to your accountant or tax professional to confirm if financing business vehicles, plant and equipment could help to maximise your tax deductions and reduce tax payments this financial year.
Finance Solutions
Maximize this government business stimulus by speaking to Swoop about your asset finance options. We will work with you to find the best asset / equipment finance product for the equipment you need to grow your business. Sign up today.
yet? Register here!