These deductions are available if the asset is purchased and/or financed before June 30th
A simplified explanation
The recent $30,000 immediate write off as mentioned in the Federal Budget on April 1st has now been passed through both Houses of Parliament so it is law (pending Royal assent which is simply a formality)
So who can claim these 100% Write-Offs this year (2019 Financial year) and at what level?
Let’s work backwards.
$30,000 – 100% Write-Off (2/4/2019 to 30/6/2020)
All companies with the turnover up to $50 million p/a can claim a 100% write-off for equipment with a purchase price of $30,000 or less (excluding GST) where that equipment has been acquired and installed from April 2, 2019 until June 30, 2020 (almost the entire last quarter of this financial year and all of next financial year)
$25,000 – 100% Write-Off (29/1/2019 to 1/4/2019)
All companies with a turnover of up to $10 million can claim a 100% write off on equipment with the value of $25,000 or less (excluding GST) that has been acquired and installed between January 29, 2019 & April 1, 2019
$20,000 – 100% Write-Off (1/7/2018 to 28/1/2019)
All companies with a turnover of up to $10 million can claim a 100% write off on equipment with the value of $20,000 or less (excluding GST) that has been acquired and installed between (July 1, 2018 & January 28, 2019)
So you can see that there are 3 tiers that are claimable and it is ONLY the most recent $30,000 tier which can be claimable by all companies with the turnover up to $50 million.
All 3 tiers are available to companies with the turnover up to $10 million.
Remember these are claimable on individual assets (not simply the total invoice value where there are multiple assets being purchased) so in the event that the company is buying 4 identical assets at $18,000 each plus GST, all 4 assets are applicable to this 100% write off opportunity.
Clear as mud?
If you have any questions please feel free to contact your Finlease Team Member or your accountant.
If you are looking at buying equipment before June 30 to take advantage of these 100% write off’s, we would be delighted to assist with the finance.
Mark O’Donoghue, CEO & Founder of Finlease