The federal government has announced that it’s initiative $150,000 instant asset write-off initiative, designed to assist small business has been extended for six months to 31 December 2020.

Program eligibility has also been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million). This is designed to further stimulate the economy by allowing businesses to update equipment and machinery, or purchase new tools of the trade and obtain the benefits of an instant tax write off.

Under instant asset write-off, 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.

The above information is a brief summary only and does not take into account your personal needs and is not a substitute for independent professional advice. We strongly recommend that you speak to your accountant as they will be able to provide you the most suitable advice for your individual circumstance and to ensure that you are also always receiving the most up to date information.