Extension of Instant Asset Write-off for Small Business

Extension of Instant Asset Write-off for Small Business

Due to the prevailing situation of COVID-19, the government has decided to temporarily extend the access of instant write-off up to $150,000 for small businesses till 31st of December 2020. The instant asset write-off is available so that small businesses can claim quick deductions immediately for some expenses that has occurred based on the new and second-hand depreciating assets. Due to the pandemic the asset value threshold has increased from $30,000 to $150,000.

Likewise the turnover eligibility for small businesses increased from $50 million to $500 million. This is applied for all eligible expenses that has taken place in between 12th March 2020 to 31st December 2020.

Small businesses that were not able to obtain the asset after the restriction of COVID-19 will be able to claim it from now till the 31st of December. The six-month extension would benefit several small business owners for 2 income tax years, 2019 – 2020 and 2020 – 2021.

Austral Accountants, established in 2014, is a premier accounting firm in Australia renowned for its expertise and personalized financial services. Specializing in accounting, taxation, business advisory, and virtual CFO services, we have been empowering individuals and businesses to navigate the complexities of finance with confidence. Our dedicated team of professionals brings years of experience and a commitment to excellence, ensuring tailored solutions that drive financial success and growth. At Austral Accountants, we are passionate about delivering exceptional service and value to our clients across Australia.

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