20 March 2020

Announcement - $150,000 Instant Asset Write-Off!

150000 Asset Write Off

The Australian Government has recently announced a new economic threshold to help hardworking businesses. This means that from now, until 30th June 2020, you can take advantage of a $150,000 instant asset write-off!  

 

100% Instant Asset Write-Off: 

  1. Applies to all machinery and attachments with an individual purchase price of less than $150,000 excluding GST (increased from $30,000).
  2. Valid for ABN registered businesses with revenue turnover of less than $500 million (increased from $50 million). 
  3. 100% tax write-off in the current tax year ending 30th June 2020. Customers must take delivery prior to this date. This incentive expires on 30th June 2020. 
  4. No limit on how many assets are claimed. 
  5. Applies to both new and used assets.

Example: Contractor Pty Ltd buys a Kobelco SK55 excavator for $95,000 plus GST in April 2020. For the tax year ending 30 June 2020, Contractor claims $95,000 as a tax deduction and reduces tax liability by $26,125, assuming the tax rate of 27.5%.

 

50% Instant Depreciation Write-Off:

  1. Applies only to NEW assets valued over $150,000 with no maximum.
  2. Valid for companies with revenue turnover less than $500 million. 
  3. Valid until 30th June 2021, that is 15 months validity. 
  4. Customers can claim tax deduction of 50% of the purchase in year 1, plus normal tax deprecation rate on the remaining 50% asset balance in year 1. 

Example: Contractor Pty Ltd buys a Kobelco SK300 excavator for $270,000 plus GST in May 2020.  For the tax year ending 30 June 2020, Contractor claims a tax deduction of $135,000 (50% of $270K), plus a normal tax deduction of $24,300 (18% of the remaining $135K). Total tax deduction of $159,300 reduces tax liability by $47,790, assuming a tax rate of 30%. 

For more information click here.

 

Luckily for you, we have a wide range of new and used machinery and attachments - choose everything from excavators, skidsteers, track loaders, positracks, tractors, balers, buckets and much more!

What are you waiting for?!


Cheers,
The Team at Melbourne Tractors Group


Melbourne Tractors (Somerton): (03) 9303 5777
Melbourne Tractors (Dandenong): (03) 9799 4777
Brisvegas Machinery: (07) 3217 0630
Meltrac Machinery: (03) 5536 0222
Ballarat Tractors: (03) 5334 2444