Instant Asset Write Off: Extended Opportunity for Business Growth
In a move to support businesses and stimulate economic growth, the Australian Government has reinstated the Instant Asset Write-Off initiative. This announcement brings welcome news to businesses across the country, offering an extended opportunity to invest in assets and accelerate depreciation deductions.
Instant Asset Write-Off Extension
This initiative is for small businesses with a yearly turnover under $10 million. They can instantly deduct the cost of assets under $20,000 each, bought and used (or ready to be used) between July 1, 2023, and June 30, 2024.
The great part? This applies to every qualifying asset, allowing small businesses to write off multiple assets as long as each is under the $20,000 limit.
For assets costing $20,000 or more, which don’t qualify for this immediate deduction, there’s still a benefit. These higher-priced assets can go into the small business depreciation pool. In the first year, they’ll depreciate at 15%, and in following years, the rate increases to 30%.
How Businesses Can Benefit
The Instant Asset Write-Off extension presents a valuable opportunity for businesses to invest in essential assets and drive growth. By taking advantage of the scheme, businesses can:
Boost Productivity:
Invest in new equipment, machinery, or technology to enhance productivity, efficiency, and competitiveness.
Reduce Tax Liability:
Claim immediate deductions for eligible asset purchases, reducing taxable income and potentially lowering tax liabilities.
Stimulate Economy:
Support local suppliers and industries by investing in Australian-made assets, contributing to economic recovery and job creation.
At Teltech, we understand the importance of strategic asset investment for business success.
Contact us today to learn how we can help you identify eligible assets and make the most
of the Instant Asset Write-Off extension.
