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Posted: March 23
The Australian Government has announced measures to support business impacted by the Coronavirus (COVID-19). If you’re a sole trader without employees, you are eligible for:
The Government has increased the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2022.
The 2020-21 Budget is building on the existing instant asset write-off and backing business investment (BBI) incentives by allowing eligible businesses with an aggregated annual turnover up to $5 billion to deduct the full cost of eligible depreciable assets of any value in the year they are first used or installed.
Full Expensing will generally apply to new assets, and will also allow small and medium-sized businesses (with aggregated annual turnover below $50 million) to deduct the full cost of new and second‑hand assets. The cost of improvements made during this period to existing eligible depreciable assets can also be fully deducted.
Other assets purchased that don’t qualify for Full Expensing may still qualify for the IAWO or BBI.
Read more about the increased instant asset write-off .
A time-limited 15 month investment incentive (through to 30 June 2021) to support business investment and economic growth over the short term, by accelerating depreciation deductions. Businesses with a turnover of less than $500 million will be able to deduct 50 percent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.
Learn more about Backing Business Investment.
The Government has created an initial $1 billion support fund to provide assistance to industries and regions severely affected by the economic impacts of Coronavirus.
Read more about the assistance for affected regions, communities and industries.
This will provide businesses with funding to meet immediate cash flow needs, by further enhancing lenders’ willingness and ability to provide credit. Businesses with a turnover of up to $50 million will be eligible to receive these loans.
Learn more about the Coronavirus SME Guarantee Scheme.
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