Instant Tax Write Off 2020-21 Budget Update

On 6 October 2020, as part of the 2020-21 Budget, the government announced that it will target support to businesses and encourage new investment, in part through a temporary full expensing incentive*.

Have you heard the news? Eligible businesses with an aggregated turnover of less than $5 billion will be able to deduct the full cost of new eligible depreciating assets that are first held, and first used or installed, between 7:30pm AEDT on 6 October 2020 and 30 June 2022. For small and medium sized businesses (with aggregated turnover of less than $50 million), full expensing also applies to eligible second-hand assets.

The 2020-21 Budget announcement now removes any write-off thresholds and allows for the full expensing in the first year of use to new depreciable assets and cost of improvements to existing eligible assets.

• Businesses with annual aggregated turnover of less than $5 billion will be entitled to an immediate tax deduction for the full cost of new eligible capital assets and improvements to existing eligible assets acquired from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2022
• Businesses with aggregated turnover of less than $50 million will also be entitled to an immediate tax deduction for the full cost of second-hand assets acquired from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2022
• Businesses with aggregated annual turnover between $50 million and $500 million can claim an immediate deduction for the full cost of eligible second-hand assets costing less than $150 thousand if they are purchased by 31 December 2020 and installed ready for use by 30 June 2021
• Small businesses with aggregated turnover of less than $10 million can deduct the balance of their simplified depreciation pool at the end of the income year under the new measure
• Businesses that hold assets eligible for the enhanced $150,000 instant asset write-off will have an extra six months, until 30 June 2021, to first use or install those assets

It’s a great time to reinvest in your assets, they can be new or second hand.  By reinvesting in your operations and replacing or upgrading your equipment, you can take advantage of the changes.

So why not start your upgrades with our range of mobile crushers, screens & conveyors?