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.

 

 

RELATED: Aussies to get 'instant' tax cuts

RELATED: Winners and losers in this year's Budget

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


Did Nicole Kidman cause Byron’s traffic bedlam?

Premium Content Did Nicole Kidman cause Byron’s traffic bedlam?

MAJOR delays are at a scale “we have not seen before in Byron Bay”.

How to claim your $100 vouchers today

How to claim your $100 vouchers today

Starting today, millions of households in NSW will be able to get free vouchers to...

Restaurant fined $5000 for Public Health Order breach

Premium Content Restaurant fined $5000 for Public Health Order breach

POLICE monitored the eatery over two days before issuing the fine.