Many businesses need cashflow assistance or new equipment to get going again?
The banks have said they were going to hand out business loans for small businesses. The problem is, the criteria has been so strict that it’s been tricky to actually get the finance.
Some of our lenders are easing their guidelines, so please contact us to see if we can help with some of our non-bank lenders
The second piece of good news is
$150,000 Instant Asset Write Off Extended
If you’ve been debating whether to purchase a new business asset before 30 June 2020 to take advantage of the $150,000 instant asset write off, as of today, the deadline has been extended.
As part of the Governments Covid-19 Stimulus Package, the Treasurer, Josh Frydenberg, announced back in March 2020 the limit to claim an instant tax deduction for a business asset was increased from $30,000 to $150,000 per item (conditions apply for motor vehicles). This increased limit was due to end on 30 June 2020 and decrease to $1,000 on 1 July 2020.
However Government has now announced that the $150,000 limit is extended until the 31 December 2020. So good news. If you haven’t taken advantage of this incentive before 30 June 2020, you now have until 31 December 2020 to purchase assets up to $150,000 and still obtain an instant tax deduction for the cost (exclusions apply for motor vehicles).
If you’re considering purchasing a new vehicle (which the sole purpose is to carry passengers) then the $150,000 instant asset write off limit doesn’t apply to you. Instead the limit is restricted to the luxury car tax limit of $57,581. However, we do not provide taxation advice, so please check with your Accountant.
As always, we are here to assistant you and your business, to ensure we all come out the other side, not in good shape, but ‘great’ shape.