Are you looking to purchase a vehicle or equipment for your business?
The government has introduced temporary tax depreciation incentives that could help your business get back on track and get the equipment you need. Here’s what you need to know.
The Instant Asset Write-Off to comes to an end on 30 June 2023
On 11 May 2021, as part of the Federal Budget 2021-22, the Government announced an extension of the Instant Asset Write-Off by one year to 30 June 2023.
Continuation of the provision allowing small businesses (aggregated annual turnover of less than $5 billion) to instantly write off asset purchases enabling them to deduct the full cost of eligible capital assets acquired and first used or installed by 30 June 2023. This incentive can also be applied to the cost of improvements to existing assets.
Depreciating assets may include new business vehicles and equipment.
For businesses with an aggregated turnover of less than $50 million, the assets can be second-hand.
Temporary losses can now be carried back for an extra year, to support cash flow by allowing eligible companies to carry back tax losses from the 2019/20, 2020/21, 2021/22, and the 2022/23 income years to offset previously taxed profits in 2018-19 or later income years. This will generate a refundable tax offset in the year in which the loss is made.
Are you eligible?
Business owners or sole traders are eligible.
Find out more about eligibility, requirements and exclusions on the ATO Website.
If you’re hoping to take advantage of these temporary incentives but need funding, financing might be an option.
For your equipment or vehicle loan enquiries, contact us now. We are always ready to help.