none

INSTANT ASSET WRITE-OFF SCHEME – BUY OR BYE-BYE

08-05-2018
by 
in 

With noises from both sides of politics about company tax reform, this year could well be the last chance for small to medium manufacturing enterprises to take advantage of the ATO’s Instant Asset Write-Off Scheme.

For the benefit of those who might have forgotten, the scheme, which was originally introduced in the 2015 Federal Budget by then Treasurer Joe Hockey, allows SMEs to instantly write off any eligible asset purchase up to $20,000 value, effectively reducing the company’s taxable income for the year by the value of the asset.

Originally intended to run until 30th June 2017, last year the scheme was extended for 12 months and the turnover limit for qualifying companies was raised to $10 million. And while several bodies are lobbying for the scheme to be made permanent, the official position is that the $20,000 asset price limit will revert to $1000 on 1st July 2018.

One person who has been a key advocate of the scheme since its inception is Greig Maver of Maverick Equipment. “Having operated as an SME for many years, I can certainly testify that there aren’t many Santa Claus moments.

“But this write-off scheme has been one that has kept giving, enabling us and to improve our productivity by purchasing assets that we might otherwise have thought twice about and helping our customers to make decisions on materials handling equipment that is only going to improve their productivity as well.

“Mind you,” he adds, “with all the political rumblings about tax reform, I wouldn’t bank on the scheme being extended beyond this year.”

Related news & editorials

  1. 15.09.2020
    15.09.2020
    by      In , In , In
    It may be seen as a bit of an irony to suggest that there has never been a much better time for manufacturing business to bask in the glory of public attention, especially during a time of COVID-19 pandemic.
    But according to Chief Executive Innes Willox from peak employer AiGroup, it is a time for... Read More
  2. 15.07.2020
    15.07.2020
    by      In , In
    St.George Chief Economist Besa Deda offers a renewed outlook for the Australian manufacturing sector as the fallout from the coronavirus pandemic continues.
    When COVID-19 hit the world in early 2020, economies were shattered as lockdowns forced social distancing and mass business closures. The... Read More
  3. 15.07.2020
    15.07.2020
    by      In , In , In
    Digitalisation and the acceleration of globalisation over the last two decades has offered Australian customers convenience and greater choice. Many local brands have taken a hit where international goods have succeeded due to their price competitiveness.
    While the COVID-19 pandemic has caused... Read More
  4. 09.03.2020
    09.03.2020
    by      In
    South Australia boasts a highly skilled and educated workforce, a renewed focus on entrepreneurship and innovation, and multi-billion-dollar defence industry contracts.
    The state’s world-class research institutions and universities, an investment in skills and the development of entrepreneurial... Read More