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The instant asset write-off deadline approaches

Apr 11, 2023

asset finance

As the cut-off date for the instant asset write-off program approaches on June 30, 2023, many businesses are feeling the pressure to take advantage of the program before it ends.

During the pandemic, the federal government introduced temporary full expensing that applied to businesses of all sizes, as opposed to the size limits for the instant asset write-off.

The program has been a popular initiative since its introduction in 2015, allowing businesses to immediately write off the cost of assets valued up to a certain amount instead of depreciating them over time.

However, these initiatives which encouraged owners to invest in their businesses are coming to an end by this July.

With the program ending soon, businesses may not be aware of the long-term implications and the extra red tape that comes with it. Businesses need to be prepared for the changes and we advocate seeking professional advice before making any decisions.

Eligibility to use the instant asset write-off on an asset is dependent on a few key factors, including:

  • Your business aggregated turnover
  • The date the asset was purchased
  • The date the asset was first used or installed ready for use
  • Whether the asset is new or second hand

The instant asset write-off eligibility criteria and thresholds have changed over the years, so check with your Shakespeare advisor to confirm eligibility.

Please note that you must ensure the asset is installed and ready for use by 30 June 2023 or you won’t be able to claim it, so you will need to act quickly.

After 30 June businesses will need to depreciate any asset over $1,000, and for businesses with a turnover above $10 million, the threshold will be $100.

For further details visit the ATO webpage or contact your Shakespeare advisor for further information.

If you would like to take advantage of the instant asset write off scheme but need the finance to do so, the team at Shakespeare Leasing and Mortgage Solutions can help find you the right commercial asset loan for your businesses. Call us on 9321 2111 or email peter.elkerbout@shakes.com.au for a free, no obligation consultation.