Instant Asset Write-Off

Instant Asset Write-Off

Instant Asset Write-Off to cease on 30/6/2023: Act NOW to claim a deduction in 2023 

For eligible businesses, the instant asset write-off scheme provides an excellent opportunity to claim an immediate deduction for certain costs relating to depreciating assets. This means you can reduce your taxable income and improve your cash flow by claiming an immediate deduction for assets in the same financial year the asset was purchased.

These may include new business vehicles and equipment, such as computers, machinery and tools. However, keep in mind that you can only claim the write-off for the percentage of the asset that is used for business purposes.

For instance, if you purchase new equipment for your business and use it for personal tasks 20% of the time, you can only write off 80% of the asset cost under the scheme.

Notably, the instant asset write-off scheme is only available to businesses with an aggregated turnover of less than $50 million. Additionally, the scheme does not apply to all assets, and there are limits on the cost of the assets that can be claimed.

If you plan to purchase assets for your business and want to claim the deduction under the instant asset write-off scheme, NOW is the time to act. The scheme is finishing on 30/6/2023, and any purchases made after this date will not be eligible for the deduction.

For more information, please contact us at 1800 618 800 or via email at admin@simmonslivingstone.com.au.

 



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