Extension to the Instant Asset Write-off
The Federal Government has extended its Instant Asset Write-off by 12 months to June 2023. All Australian businesses that have an annual turnover of up to 500 million will be able to take advantage of the scheme.
The threshold value of each eligible business asset was set at $150,000 or less per asset, but new terms announced in the last federal budget remove this threshold amount. With an instant asset write-off, businesses can claim the full depreciation deduction of the asset at tax time in the financial year the asset was purchased. The asset must be first used or installed ready for use before June 30, 2023.
If the asset is used for both business and personal activities, only the business portion of the asset is covered by the scheme.
Second-hand assets also qualify for the deduction.
Take advantage of the scheme with Packline Solutions
The purpose of the instant asset write-off scheme is to encourage businesses to purchase new assets. Spending on improvements to existing assets is also eligible for the deduction.
This is great news for all packaging companies or businesses who are looking to streamline their packaging processes by purchasing or upgrading mailroom assets, pallet wrapping machines, strapping machines and carton sealing machines.
By purchasing new machinery and claiming the instant asset write-off you will reduce your taxable profit, saving money at tax time.
For more information on the instant asset write-off for business, visit the Australian Taxation Office information page here.
To work out if your business is eligible and which of your assets fall under the scheme terms and conditions, you should contact your accountant.