Headlines: Instant Asset Write Off due to COVID-19
It’s like we are living in a SciFi movie! One minute we are hearing about the threat of this new virus and the next everything is being cancelled. But there is good news for small business owners in Australia that the government has announced a stimulus package to help them in this time of crisis.
We obviously need to take the government and health experts seriously.
First and foremost this is to protect the vulnerable and those most at risk.
But almost just as frightening as the immediate health risk, people are concerned about how they will pay their bills and survive financially.
The good news is the government has announced a stimulus package. I think it’s important for us to understand how this is going to help us. Because this isn’t going away and it may be long-lasting.
From the Australian Government via our Accountant:
Enhancing the Instant Asset Write Off
Lifting the threshold to $150,000 (from $30,000) and expanding access to businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
The threshold applies on per asset basis, so eligible businesses can immediately write-off multiple assets.
This new threshold ONLY applies from today until 30 June 2020, for new or second-hand assets first used or installed ready for use in this time frame.
**The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.**
This is good news for business owners
It means that business’s purchasing vehicles (and our products) can take full advantage and depreciate the whole amount this year rather than over the next 5 years.
That’s huge!
In effect, their Car Buddy Tracker, Asset Buddy Tracker, Dash Cam, Tint or Protection Package is included in this amount!
Please make sure you are educating your customers as to how they can utilise this Government benefit! Last time the Government did something similar to this (GFC 07/08) the knock-on effect worked wonders for purchases. Let’s hope it works again!
For more information about the Government stimulus package, please contact your personal accountant, or ask at work; CFO, Manager or Business Accountant for more direction or clarification.
We also want you to know we will support you in whichever way you need in terms of Repping, phone sales, Skype meetings, promotions etc. Please contact us directly and discuss your Dealerships needs with us!
And please look after yourself mentally. With bad news being thrown at us 24/7 from all angles, having a positive attitude and focusing on being resilient will help!
