30 day
Money Back
Guarantee
In 2020 the Federal Government announced that most businesses earning up to $5 billion can now write off eligible assets, at any cost, until June 2022 with the instant asset write-off deduction.
The measure applies to eligible assets purchased from 6 October 2020 and first used or installed by 30 June 2022. The cost of improvements to existing eligible depreciable assets made during this period can also be deducted in full.
The instant asset write-off is referred to as ‘temporary full expensing’, which means 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 Government estimated 3.5 million Australian businesses will be eligible in a move set to encourage spending among businesses.
In March, the Government had already increased the eligible amount for each asset up to $150,000 from $30,000. Now, the Government says there is no limit on asset prices.
Eligible assets include computers, tablets, wireless network equipment (including routers, access points, antennas, and repeaters), sensors, trackers or anything else that is used in the running of a business.
The asset needs to be purchased and installed within the time period the Government specifies –from 6 October 2020 up to June 2022. It needs to be ready for use – you can’t just have it lying around and then plan to install it a couple of years from now.
The increase is another reason why it’s so important for businesses to have their expense tracking and documentation under control.
Here are some tips from MYOB on how to make sure you claim an asset correctly. Keep in mind, these details may change as this is based on past eligibility criteria:
If your business is in need of a cellular or wi-fi connectivity solution make the most of the instant asset write off in 2022. Visit the ATO to find out more about eligibility or contact our Customer Relationship Team to discuss how we can assist with your business needs. 1300 769 378 or sales@powertec.com.au
* It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered accountant, legal practitioner or financial or investment adviser.
Contact our team to begin your automation journey today on 1300 769 378 or solutions@powertec.com.au