It’s time to shop!
Now for one of the more exciting tax related announcements of the year! If you are interested in purchasing a low value asset in the near future it is time to go shopping!
In March 2020 the Government increased the low-value asset write-off threshold from $500 to $5,000. This change was an effort to stimulate spending and lessen cost burdens on businesses during the COVID-19 downturn.
The low-asset write-off provision allows an asset purchase to be 100% tax deductible, provided it is under the value threshold.
From 17 March 2021 the threshold will decrease from $5,000 to $1,000, so if you’re interested in purchasing a business asset between the value of $1,000 and $5,000 then THE TIME IS NOW! Buy before 16 March 2021 to maximise the amount of tax that can be deducted from your purchase.
If you have any questions please get in touch, as always we are here to help!