Instant Asset Write Off Explained

By Cody Corporation
Instant Asset Write Off

Instant Asset Write Off extended

Some good news for this year is that the Instant Asset Write Off has been extended until December 31st, 2020.

What does this mean? Are you eligible? What can I buy?

These are the most commonly asked questions when it comes to this government scheme, below we will breakdown the need to know information about how it works and what it can be used on.

What this instant asset write off extension means is that you can claim an immediate deduction for the business portion of an asset first used or installed ready for us from July 1st to 31st December 2020.

To be able to claim this deduction your business must meet the eligibility criteria below:

  • Your aggregated turnover is less then $500 Million
  • The date you purchased the asset falls within the eligibility window – July 1st – December 31st
  • The asset must be used or installed and ready to use within the eligibility period – July 1st – December 31st
  • The cost of the purchased asset must be less than $150,000.

Before making any major purchases we always recommend talking with your Accountant or Tax Professional to make sure you are eligible for the asset write off scheme and that any purchases don’t negatively effect your cash flow or finances in the short term.

Any purchases of equipment, machinery or tools should be made on your business needs which will aid in progressing toward your business plan or increasing your current work efficiency.

When it comes to equipment which can be purchased and qualifies for the Asset Write Off Scheme below are some examples of equipment which will aid in increasing your productivity, providing more accurate results or increasing your ability to apply for jobs not normally accessible before.

Machine Control Systems:

Such as 3D or 2D Excavator or Grader systems which increase your machines productivity.

On-Board Weighing Systems which allow you to accurately measure your stock ins and outs and avoid overloading fines.

Box Grades & Laser Guidance Systems increase your ability to apply for certain jobs not normally accessible before the purchase of such equipment.

Surveying Equipment:

GNSS Receivers, whether its for Earthworks level checks increasing site productivity or for land surveying needs a GNSS Receiver will help increase your efficiency.

Robotic & Total Stations are a surveyor’s best friend, have you got an old machine needing replacement, wanted a total station with additional features to help increase productivity then this may be the time to upgrade.

Construction Tools & Equipment:

From upgrading your fleet of handheld tools to purchasing something new to your fleet such as Laser Levels, 3D Scanners, Grade, or pipe Lasers and much more all of these pieces of equipment fall within the guidelines for the instant asset write off.

Should you be unsure whether a piece of machinery, equipment or a tool is eligible for the asset write off you should contact your Tax Professional and discuss with them your options.

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