Businesses to benefit from $150k asset write-offs

Gladstone accountant Allison Totorica says extension to instant asset write-off a win for businesses.

CQ Taxation Services proprietor Allison Totorica says there are different methods to claim tax introduced by the ATO due to COVID-19

BUSINESSES will benefit from an extension to the $150,000 instant asset write-off until December 31.

Gladstone accountant Allison Totorica said the $150,000 value was a huge increase compared to what businesses had seen in the past for instant asset write-offs.

"It's definitely going to benefit some clients who have recently called me, and (I) said I'm just not going to be able to do it before June 30, due to hold-ups" she said.

"The $150,000 is a huge benefit because we often see $20,000, the $25,000 and most recently $30,000.

"There are some items, motor vehicles being a big one, where they are just over that in value, and trucks and machinery, that we've not been able to get through as an instant write-off.

"So it's definitely going to benefit those clients who are looking to spend that sort of money."

Most business items are covered, but not all, and they don't have to be new.

"Capital building and capital works items are excluded, but the majority of plant and equipment, including motor vehicles up to $57,581, is an instant write-off," Mrs Totorica said.

Flynn MP Ken O'Dowd said he fought hard for businesses to get the extension.

"Local business are the lifeblood of our economy and I want to do everything I can to assist them through this difficult time", Mr O'Dowd said.

"This extension is great news for local businesses due to the coronavirus - deliveries are being delayed and installation times are taking longer than normal.

"This gives business additional breathing space to get the assets they require."

Mr O'Dowd confirmed assets don't have to be new.

"Assets can be new or second hand and could include for example a truck for a delivery business or a tractor for a farming business," he said.

"The local gym might want to upgrade their equipment as they are reopening."