Instant asset write-off helping MIA businesses

Yoogali Engineering’s owner Chris Lanza said its certainty helped him out.

Under the instant asset write-off scheme, he managed to claim many things – computer upgrades and new machinery including many other much-needed equipment.

“Our saw especially was getting long in the tooth, and we’d been thinking about it for a while however this was the incentive we needed to upgrade,” Mr Lanza said.

“Obviously it’s been a benefit tax wise, and it gives us an incentive to upgrade to machinery and some older gear that we had, and the upgrade helps our productivity.”

Mr Lanza said it has made the decision to invest in the money easier, knowing there was an incentive come tax time.

Local Member for Parliament Sussan Ley said “the instant asset write-off is directly helping our local small businesses increase their bottom line and improve cash flow, which means more investment and job creation.

Small businesses in the MIA who took advantage of the scheme included 480 from Griffith and Yenda, 275 from Leeton and Yanco, another 125 in Narrandera.

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The instant asset write-off means businesses can invest in better tools, café or restaurant can update kitchen equipment, an office might need a computer upgrade, it is all about being able to reinvest to grow their cash-flow.

“There is also no limit to how many assets you can claim the deduction for, however each one must cost less than $20,000,” Ms Ley said.

“Research suggests up to two-thirds of businesses are underutilising this deduction, and many thousands more can now benefit after we increased the businesses turnover threshold to $10m per annum.”

Using the simplified depreciation rules, assets costing less than the instant asset write-off threshold are written off in the year they are bought and used, or installed ready-for-use.

This applies irrespective of whether the asset is purchased new or second-hand.

More information about instant asset-write-off can be found here.