Don’t Miss Out: Instant Asset Write-off Threshold Now A Massive $150K!

Have you been ruminating over purchasing a new ultrasound machine?


Maybe you haven’t been able to decide between a new ultrasound system or another critical piece of equipment?

Now you may not have to choose…. You can have both!

But you only have until June 30th, 2020 to take advantage of the new threshold.

The Government recently announced a massive increase in the instant asset write-off threshold from $30,000 to $150,000 for eligible assets. This includes new or second-hand Ultrasound machines first used or installed ready for use from March 12th, 2020 until June 30th, 2020.

What is the “Instant Asset Write-off”?

The instant asset write-off allows small businesses to claim immediate deductions on new assets.

It was revised last year to $30,000 and just recently has been revised again to a massive $150,000! This applies to new or second-hand equipment asset purchases – such as ultrasound machines.

The assets must first be used, or be installed for use, in the income year you’re claiming for. There is no limit on how many assets you can claim each year. The new threshold currently applies to businesses with an aggregated turnover of less than $500 million.

But you need to Take Action before it ends…

From July 1st, 2020 the instant asset write-off will only be available for small businesses with an aggregated turnover of less than $10 million and the threshold will drop back to $1,000.


WHY IS THE GOVERNMENT INCREASING THE THRESHOLD?

The government introduced this incentive to improve cash flow by bringing forward tax deductions. This will give small businesses a boost and encourage them to reinvest in their operations and replace/ upgrade their assets. If small businesses invest money to make them more productive, that will have a direct, positive impact on the economy which has taken an unprecedented hit during the COVID-19 pandemic.


WHAT ASSETS QUALIFY?

The purchased asset can be new or second-hand. The total cost must be less than the threshold amount of $150,000 – irrespective of any trade-in amount received.


WHAT DOES THIS MEAN FOR VETERINARY PRACTICES?

If you are thinking of investing in new equipment or upgrading old equipment, there couldn’t be a better time to take advantage of this great opportunity.

Ultrasound is a live imaging modality with instantaneous feedback for rapid diagnosis. It is relatively affordable and very portable. It can be utilised in a range of settings from Point of Care in emergencies to field diagnoses in large animals and a whole lot of small and large animal focused exams in between.

BCF Ultrasound has a wide range of quality Ultrasound Systems to suit your specific needs.

Don’t wait, Contact Us Today  to discuss various options for your clinic.



Before making any purchases, we advise you to speak to your accountant/financial advisor to discuss how the purchase might impact your cash flow or current tax position.


LEARN MORE

https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

Leave a Reply