$150k Instant Asset Write-off Extended
As part of the Government’s measures to support businesses survive the economic impact of COVID-19, the instant asset write-off (IAWO) threshold amount was increased from $30,000 to $150,000 as of 12th March, 2020.
Initially intended to end on 30th June 2020 and revert back to different, less beneficial depreciation rules from the 1st July 2020; the Federal Government has decided to extend the period up to and including the 31st December, 2020. This proposed extension is currently being processed by the Government, and is yet to be finalised at the time of posting this blog (see here for more information).
This IAWO increase is available to all businesses with an annual turnover of less than $500 million and will help to further support planned investments for around 3.5 million businesses in Australia.
Here are the facts:
- Eligible businesses will be able to claim immediate deductions on their annual turnover for assets purchased for $150,000 or less (excluding GST where applicable)
- There is a cap for some “Motor Vehicle” purchases – which are limited to a maximum of $57,581 for the 19/20 Tax Year ($59,136 for the 20/21 Tax Year)
- This deduction will be claimable on a PER asset basis (i.e. you can write off multiple assets at $150,000 each) (grouping rules do apply in some instances)
- To be eligible your business must have an annual turnover of less than $500 Million
- This IAWO increase is in effect from 12th March 2020 until December 31st, 2020 for assets first used and installed by the end date
- This will result in a lower payable tax amount at the end of the financial year
We will endeavour to keep you updated on when this extension is confirmed by the Government. In the meantime, if you have any questions or queries relating to the IAWO increase please contact our Accounting team here.
Liability limited by a scheme approved under Professional Standards Legislation
It’s that time of year again, and although it’s been a bumpy 2020 so far, your tax appointment doesn’t need to be stressful. If you’re prepared with the right paperwork, receipts, and statement information, you are on track for a hassle-free appointment with the Hrkac Group Accounting team.
Our Accounting team has prepared some handy checklists for both Personal and Business tax return appointments. You can use these as a guide for what you might need to bring with you/have them handy for your appointment this year.
Personal Tax Return Checklist
Top items to bring:
- A copy of last year’s Tax Return
- PAYG/Group Certificates
- Receipts for claims/deductions
- Self-Education costs
- Private Health Insurance Annual Taxation Statement
Download the full checklist here:
Working from home?
If you have been working from home over the past few months, you may be able to claim work-related expenses on your tax return.
For more information on what you can and can’t claim, visit the ATO website:
Business Tax Return Checklist
Top items to bring:
- Back up or invite your Hrkac Accounting specialists to your accounting program
- Capital purchase documentation
- Payroll records
Not all items on these checklists may apply to your return and you don’t have to bring these to your appointment, but they can be handy to keep on file for next year. If you are unsure about any of the items on the checklist, bring as much information as you can to your appointment, and we can help you know what is relevant to your tax return.
The Hrkac Group is ready to take your Tax Return appointments for 2020, whether it be in person, over the phone or via video call – the choice is yours.
You can make your appointment online with John, James, Shane or Linda by clicking the button below.
When you arrive for your appointment, please take the time to read our COVID-19 policy notice at the entrance, before entering. We ask if you are feeling unwell, to please reschedule your in person appointment to a later date or contact our office to change your appointment to a Zoom/Phone appointment.