How Your Business Can Take Advantage of the Extension to the Instant Asset Write-off
Last month’s 2021 Federal Government Budget delivered some great news for companies looking to invest in commercial solar power systems.
The Federal Government announced it has decided to extend the deadline for its Instant Asset Write-off Scheme for another 12 months. The original Instant Asset Write-off Scheme was due to expire on June 30, 2022, but Treasurer Josh Frydenberg announced in the Federal Budget it will now continue until June 30, 2023.
Does your business qualify?
Here’s what you need to know in a nutshell to see if your company can take advantage of the extension to this massive asset write-off scheme.
The extension to the Instant Asset Write-off Scheme applies to:
- new and used assets with a value of up to $150,000;
- assets that are used and or installed and ready to use before June 30, 2023;
- all Australian businesses with up to $5 billion in annual turnover.
The Federal Government has extended the Instant Asset Write-off Scheme to motivate your company to bring forward any spending on new assets by allowing you to claim the full tax deduction upfront and therefore reducing the amount of tax you pay.
What does this write-off allow your business to do?
Your company will be able to claim the full value of all new eligible depreciable assets of any value that are first used or installed before June 30, 2023.
Your business will also be able to claim full deductions for the cost of improvements made to existing depreciable assets.
This means as well as claiming full deductions on the cost of investing in a new commercial solar system, you can also claim full deductions on the cost of upgrading or extending your commercial solar system or maybe even investing in a solar battery.
How to get the best return on your investment
You can decide to use the Instant Asset Write-off Scheme for any assets you purchase for your company, but deciding to invest in a technology like commercial solar and battery storage really makes smart business sense because it will reduce your overheads both now and into the future, ensuring you get the very best return on your investment.
In addition to the Instant Asset Write-off Scheme there are even more limited time financial benefits available to you if you decide to invest in a commercial solar system.