TAX YEAR END – 30 JUNE 2020
The next article in our series on Tax Health Check for Businesses covers Plant and Equipment strategies.
TAX STRATEGIES PART 2: PLANT AND EQUIPMENT REVIEW
|TAX ITEM||EXPLANATION||AAG TEAM|
|Plant and Equipment Increased
Instant Asset Write-Off (IAWO) Thresholds
Note: Small businesses who wish to use the IAWO must use the small business simplified depreciation rules (i.e. small business pools.)
It is important to remember, that ordering an asset or paying for it prior to 31 December 2020 is not enough,you must also ensure the asset is delivered and installed ready for use by 31 December 2020 or you may lose the instant deduction.
For more information, please refer to our article on Vehicles and The Instant Asset Write-Off
|Plant And Equipment –
|Businesses with a group-wide turnover of less than $500 million will be entitled to accelerated depreciation on eligible assets purchased and first used (or installed ready for use) between 12 March 2020 and 30 June 2021.
Accelerated Depreciation means:
Note: If you use the Small Business General Pool for assets costing above the Instant Asset Write-Off thresholds (listed above), you can claim 57.5% during the year the asset is purchased, and the asset would continue to be depreciated at 30% in the following years.
|Plant And Equipment
|Review your asset register and write off any assets that have been disposed or are no longer in use.||CONSULTING|
Please email us at firstname.lastname@example.org if you have any queries.
We will be in touch again in the new financial year to discuss your specific requirements for your tax return and to help you to maximise your claims.
We look forward to assisting you with your tax returns.