Treasurer extends $150,000 asset write-off deduction until 31 December 2020

As part of the original stimulus measures introduced by the Federal Government, businesses with turnover of under $500M per annum are able to claim an immediate tax deduction for assets purchased between 12 March 2020 and 30 June 2020 which cost less than $150,000. On Tuesday 9 June 2020, the Government announced it would extend this particular stimulus measure until 31 December 2020 thus giving businesses more time to consider utilising the benefit of the concession.

As a reminder, another stimulus measure originally introduced by the Government allows businesses with turnover of under $500M per annum to accelerate the rate of depreciation on new assets purchased prior to 1 July 2021 that do not otherwise qualify for the instant asset write-off. The accelerated rate of depreciation allows the business to claim a deduction equal to 50% of the purchase price of the asset immediately with the balance of the purchase price then being depreciable based on the effective life of the asset.

If you would like to discuss the above, please do not hesitate to contact your client service contact at Banks Group.

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