On April 2nd, 2019 the Australian Taxation Office raised the threshold for each asset to $30,000. Not all companies are aware of this scheme and the recent changes that will now benefit even more businesses in the horticulture industry.
It is estimated that an additional 22,000 companies can now utilize the instant asset write-off with the new changes in legislation. All business with revenues less than $50 million are able to take advantage of the write-off and can purchase multiple assets as long as each asset is valued at $30,000 or less.
This is an opportunity for growers to replace old equipment with new and more efficient technology or to increase production capabilities by adding to their facility. This legislation is effective until June 30, 2020.
5 reasons to utilize the instant asset write-off
- Can increase and speed up the ROI for new capital acquired.
- Allows for money to be invested in other parts of your business.
- Allows for multiple assets to be purchased.
- Applies for upgrades on new assets acquired, as long as the total is still under $30,000 threshold.
- Encourages sustainable business growth.
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