We all like reducing our tax bill don’t we? With PM Morrison’s stimulus package now is your chance to do just that with a purchase of new cabins.
If you haven’t got your head around the ‘Instant Asset Write Off’ part of the stimulus package then here is a quick explainer of how it can help you.
Let’s start with a disclaimer… we’re not tax advisors. The explanation that follows is our simple interpretation from the ATO website. While we’re pretty confident we’ve got our heads around it you should chat it through with your accountant. What follows is not tax or financial advice.
Who can claim?
Any business with a turnover of up to $500 million
What can you claim?
Asset purchases of up to $150,000 + GST that have been installed between 12th March and 30th June 2020. It is not limited to only one asset, you can claim for as many assets as you like as long as individually they are less than $150,000.
How do you claim?
Normally you would depreciate an asset over a number of years. Depreciation reduces your taxable income and therefore reduces your tax. Rather than write off an asset over a number of years you can now write it off immediate and claim 100% of the asset value as an expense. There is no ‘claim process’ or anything. Your accountant will simply do the instant asset wrote off when they complete your tax return. It’s a really simple way to reduce your tax
The stimulus package also has reduced incentive ( 50% write off rather than 100% ) for assets installed between 1st July 2020 and 30th June 2021 so you can get half the benefit if you’re not quick on the draw.
And lastly – the disclaimer again… we’re not tax advisers (even though we’re pretty cluey). Please chat to your account to get advice about this excellent opportunity.
To find out more about the stimulus package here are 2 link to government websites that outline it in more detail.
Want to know more call us today 1800 UNIPLAN (1800 864 752)