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The instant asset write-off scheme has been extended and the eligibility criteria eased, making now an opportune time for SMEs to look at updating plant, equipment and assets. EBM Finance can help you secure the best finance option for your business.


Take advantage of the instant asset write-off scheme before year’s end


As the economic impacts of COVID-19 took hold earlier this year, the Australian Government announced eligibility for the instant asset tax write-off would be extended and the threshold significantly raised.


Businesses with annual turnovers below $500 million (previously $10 million) became eligible for the scheme which allows the full value of income-producing assets, valued at $150,000 or less (previously $20,000), to immediately be deducted instead of having to be depreciated over a number of years.


The deadline has also been extended and businesses now have until 31 December 2020 to take advantage of the tax concession.


Most plant, equipment and assets purchased – either new or second-hand – for first use or installed ready for use by 31 December 2020 and valued up to $150,000, will be eligible for instant write-off. The entire cost of the asset must be less than the instant asset write-off threshold, irrespective of any trade-in amount and any proportion for private use (business owners should consult their accountants for more information).


“Businesses can write-off the cost of multiple asset purchases so long as each asset is valued at or below $150,000 and installed ready for use by 31 December 2020,” explained Elliott Watkins, EBM Finance Associate.


“This is an unprecedented opportunity for businesses to instantly write-off plant, equipment and assets in one tax year, while financing their purchase over a number of years.”


Since the scheme was first introduced in 2015, tens of thousands of SMEs have taken advantage of the instant asset write-offs which has allowed them to invest in capital equipment while freeing up cash-flow.


“Business owners should talk to their accountants about the most tax effective finance options for their unique circumstances, then talk to us to secure that finance and put the best loan structure, with the best terms and conditions, in place so they can capitalise on the scheme’s limited time extension,” said Elliott.


ABN holders looking to finance the purchase of eligible plant, equipment or assets to take advantage of the scheme before it ends should contact EBM Finance. With established relationships with all major equipment financiers, EBM Finance specialises in plant, equipment and asset finance and can arrange loans (including low-doc loans) from $5,000.  


 EBM Finance Pty Ltd acts as a credit representative of IFBA Pty Ltd under Australian Credit Licence 391682.


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