06/03/2023
🤓 Do you want to know more about the Instant Asset Tax Write-Off? Read on or call me on 0401 725 833.
⏰ It’s for assets first purchased and USED between 6 October 2020 and 30 June 2023. That means it's ending in less than 4 months.
The ATO say:
“Eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.”
We say:
This means you can fully depreciate the cost of an asset in the same tax year as you bought it. Often you’ll write off assets over a period of years, but that’s not the case with the instant asset rule.
Benefit to you?
You can spend up to $150,000 on a new or used asset for your business – eg. Utes – and claim an immediate tax deduction.
What assets?
Vehicles that are designed to carry more than one tonne (like most utes) or nine passengers or more (mini buses), are eligible for a total instant tax write-off, up to a maximum price of $150,000.
Plus cars (threshold amount is $64,741), business equipment, tools, office furniture, computers, printing machinery and more are also eligible.
Example:
If you buy a work vehicle for the purpose of work, and it costs you $95,000, you can claim the entire purchase price back.
Don’t forget…
The asset write-off must be claimed in the fiscal year it was used for business purposes. So, say you buy a ute on May 31 2023, you need to use it for business by 30 June 2023 to claim it as a tax deduction for the 2022-2023 year.
In other words, if you’re waiting on your new Ranger ute for work, and the dealership is saying “it should be here by August”, you might miss out on the chance to claim this instant write-off.
So get to it now!
Step 1 – jump on the phone with your tax specialist to get the nitty gritty on benefits to your business.
Step 2 – call me to get your purchase and finance sorted. Mobile - 0401 725 833 or [email protected]