Instant Asset Write-Off Extended to 31st July!
There has never been a better time to invest in packaging equipment. The new coronavirus-driven instant asset write-off of up to $150,000 means that business owners effectively receive an instant 27.5 per cent discount on capex. But you will need to be quick, the scheme finishes 31st December 2020.
For investments in machinery over that amount, you can take advantage of a 50 per cent instant depreciation, which is similarly attractive. Both these schemes are effectively bringing forward depreciation from future years, but nonetheless represent a significant incentive to buy now.
Please see below for a examples of machinery provided by HMPS and Propac that would fall within the $150,000 threshold:
HMPS Entry Level Palletiser
Propac Vertical Form Fill Seal Machine
Any business with turnover less than $500m.
When does it run from?
12 March this year.
When does it run to?
31st December 2020.
Is that when machinery has to be ordered by or installed?
How do I claim?
On your tax return as normal.
Is it just for one asset?
No, multiple assets for multiple $150,000s can be claimed for.
What if the machine I want is more than $150,000?
The instant write-down will then be 50 per cent.
If you would like to know more please visit the ATO website: