During June 2020 the $150,000 Instant Asset Write Off end date was extended from 30 June 2020 until 31 December 2020.
This means that eligible businesses that purchase and install an asset costing up to $150,000 (by 31 December 2020) may be able to claim an immediate deduction in their 2021 income tax return.
When considering whether to utilise this deduction, it is important to understand that the asset must be installed and ready for use by 31 December 2020 and not just purchased. This is especially an important consideration when placing any orders for medical equipment that may have a long lead time to delivery.
As it stands currently, from 1 January 2021 the instant asset write-off will again only be available for small businesses with an aggregated turnover of less than $10 million and the threshold will revert to $1,000.
Whilst initially this increase in threshold seemed a big win for the medical professional when first introduced, the reality of a pandemic and cashflow impacts meant this increase was not as widely utilised as first thought. As we slowly return to a new normal now might be the time to take advantage of this concession.
If you need help in this area please do not hesitate to get into contact with our team.