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20 March 2020
Announcement - $150,000 Instant Asset Write-Off!
The Australian Government has recently announced a new economic threshold to help hardworking businesses. This means that from now, until 30th June 2020, you can take advantage of a $150,000 instant asset write-off!
100% Instant Asset Write-Off:
- Applies to all machinery and attachments with an individual purchase price of less than $150,000 excluding GST (increased from $30,000).
- Valid for ABN registered businesses with revenue turnover of less than $500 million (increased from $50 million).
- 100% tax write-off in the current tax year ending 30th June 2020. Customers must take delivery prior to this date. This incentive expires on 30th June 2020.
- No limit on how many assets are claimed.
- Applies to both new and used assets.
Example: Contractor Pty Ltd buys a Kobelco SK55 excavator for $95,000 plus GST in April 2020. For the tax year ending 30 June 2020, Contractor claims $95,000 as a tax deduction and reduces tax liability by $26,125, assuming the tax rate of 27.5%.
50% Instant Depreciation Write-Off:
- Applies only to NEW assets valued over $150,000 with no maximum.
- Valid for companies with revenue turnover less than $500 million.
- Valid until 30th June 2021, that is 15 months validity.
- Customers can claim tax deduction of 50% of the purchase in year 1, plus normal tax deprecation rate on the remaining 50% asset balance in year 1.
Example: Contractor Pty Ltd buys a Kobelco SK300 excavator for $270,000 plus GST in May 2020. For the tax year ending 30 June 2020, Contractor claims a tax deduction of $135,000 (50% of $270K), plus a normal tax deduction of $24,300 (18% of the remaining $135K). Total tax deduction of $159,300 reduces tax liability by $47,790, assuming a tax rate of 30%.
For more information click here.
Luckily for you, we have a wide range of new and used machinery and attachments - choose everything from excavators, skidsteers, track loaders, positracks, tractors, balers, buckets and much more!
What are you waiting for?!
The Team at Melbourne Tractors Group
Melbourne Tractors (Somerton): (03) 9303 5777
Melbourne Tractors (Dandenong): (03) 9799 4777
Brisvegas Machinery: (07) 3217 0630
Meltrac Machinery: (03) 5536 0222
Ballarat Tractors: (03) 5334 2444