How to instantly write-off a new car
The Budget delivered great news for business owners last night.
Businesses in need of new cars, utes, trucks, machinery, computers, phones or any other business essentials are getting an extra tax break from tonight.
All small, medium and larger businesses in Australia with a turnover of up to $5 billion a year will be eligible for tax write-offs of all assets up to $150,000.
The taxman will foot the whole cost until June 30, 2022.
The tax cuts apply to around 3.5 million businesses, which makes up almost 99 per cent of Aussie enterprises.
"A trucking company will be able to upgrade its fleet, a farmer will be able to purchase a new harvester and a food manufacturing business will be able to expand its production line," Treasurer Josh Frydenberg said in his speech.
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The $150,000 threshold per asset is a big bump up from the previous amount of $30,000.
The Government announced the tax break as part of an incentive to stimulate the economy and businesses hurt by COVID-19.
From next year, the instant asset-write off also includes businesses that turn over less than $10 million.
The threshold applies on a per asset basis, so eligible businesses can instantly write-off multiple assets each costing less than $150,000 that are purchased by December 31 2020.
The full write-off also applies to second-hand assets for small and medium sized businesses with an annual turnover of less than $50 million.
Businesses with annual turnover between $50 million and $500 million can still deduct the full cost of eligible second-hand assets costing less than $150,000 that are purchased by December 31 this year.
Businesses that hold assets eligible for the enhanced $150,000 instant asset write-off will have an extra six months until 30 June 2021.
Originally published as How to instantly write-off a new car