Update on the Instant Asset Write Off Tax Initiatives

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The Australian Government's recent budget announcment revealed an extension to the instant asset write-off. Your shelter might be eligible.

REMINDER: The $150k instant asset write-off ends on the 30 June 2021.

The Australian Federal Government’s recent budget announcment revealed an extension to the instant asset write-off initiative – now known as ‘Temporary Full Expensing’. The scheme was originally due to expire in 2022, but will now continue until June 30, 2023.

Temporary Full Expensing applies to eligible new or second-hand assets, installed and ready for use between 6 October 2020 and 30 June 2023.

Note: You can claim temporary full expensing for assets purchased in the 2020/2021 financial year, as long as they’re purchased and installed (ready for use) between 6 October 2020 & 30 June 2021. Check your eligibility with your accountant or financial advisor.

Temporary Full Expensing

  • Applies to any new assets, of any value
  • Businesses with annual turnover of up to $5 billion can apply
  • Businesses with up to $50 million annual turnover can fully expense second-hand assets
  • No limit to the amount of assets acquired, as long as they’re used for business purposes

All Allshelter products – including container shelters, qualify as a depreciable asset.

Under this scheme you can claim the full value of your shelter purchase, if you complete installation before June 30, 2023.

‘Temporary Full Expensing’ will run alongside the existing $150,000 instant asset write-off scheme & 50% Instant Depreciation Write Off, which end on the 30 June 2021.

The $150k Instant Asset Write Off:

  • Applies to any asset that can be used for business purposes with a price of $150k or less (excl. GST)
  • Assets must be purchased and installed from March 12th to December 31st 2020 (extended, and will finish on 30 June 2021)
  • Assets can be new or second hand
  • $150k limit for each individual asset and therefore multiple assets (totalling more than $150k) can be claimed under this initiative
  • No limit to the amount of assets acquired

50% Instant Depreciation Write Off

  • Any eligible assets with a purchase price greater than $150K (excl. GST), acquired from 12 March 2020 to June 30 2021
  • Assets must be new
  • No limit to the amount of assets acquired

We strongly recommend you discuss your elibility for these initiatives with your accountant or financial advisor.

Please contact us if you have any questions or need assistance with your shelter purchase.

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