Updated 3 August 2023
The Federal Government's instant asset write-off scheme continues to offer farmers and rural businesses major incentives to invest in assets which will improve productivity for the rural sector.
The Scheme was expanded from $30,000 to $150,000 in March 2020, to support businesses as part of the Federal Governments' Economic Stimulus Package in response to COVID-19. It has been extended indefinitely and includes:
Businesses that meet the criteria are able to apply an instant deduction for the portion of the asset's cost that relates to business use, during the year when the asset is initially put to use or made ready for use. The option of an immediate asset write-off is applicable in the a range of scenarios. For numerous assets, provided the cost of each separate asset falls below the specified threshold.
Many farmers and rural businesses have already taken advantage of the Scheme and used the tax write off to buy new or used machinery, plant and vehicles priced within the $150,000 spending threshold. Some have been able to separate the machinery components out to ensure each item falls within the $150K cap. There is no limit to the number of equipment items a business can buy and claim against their taxable income.
Eligibility to use instant asset write-off on an asset depends on:
If you are interested in taking advantage of the extended asset write-off scheme, please contact Ben Millar, Finance Broker, who would be happy to answer any questions you may have or provide a quick quote.