The devastating effects of the coronavirus pandemic are being felt around the globe, and governments are announcing big plans to mitigate the economical impact of the outbreak. The latest announcements from the Morrison government could offer an exceptionally bright light at the end of the tunnel for small and medium sized businesses, with the government confirming that the instant asset write-off scheme has been expanded.
The write-off threshold is being temporarily raised from $30,000 all the way up to $150,000, representing a fivefold expansion. Not only that, but businesses with annual turnover of up to $500 million, as opposed to the initial tally of $50 million, are now eligible for the write-off. These alterations will be in place until June 30, giving small and medium businesses all across Australia a window of more than three months in which to take advantage of the scheme and seek unsecured finance to bring their businesses to the next level.
Huge Tax Breaks
Experts are estimating that businesses will pay around $2.5 billion less in taxes in the next two years due to this decision, and countless businesses will want to take advantage of the relaxed rules as quickly as possible. Businesses can now confidently borrow much larger amounts of money than before from trusted private lenders and invest in growth and expansion of their companies. Now’s the perfect time to find out how much you can borrow!
All the Details
The scheme essentially allows businesses to write off the costs of all assets under the threshold, claiming tax deductions for the first year the assets are used. It can be used for purchases of new equipment, computers, office furniture, vehicles, industry-specific tools, and so much more, with over 360,000 businesses claiming $4 billion worth of deductions in 2017-18 alone. Even businesses looking to invest in commercial property finance and expand into entire new office spaces can take advantage of this new change.
The Time Is Now
This big decision from the government could help to stave off countless company failures, as well as offering a real investment opportunity for business owners across the nation. Business owners can borrow $150,000 to give their companies a much-needed boost. If you've been hesitating about investing in new equipment or just waiting for the right moment to make some big changes at your company, this is the moment to act.
The above article is based on the article posted in the Australia Financial Review on March 12th 2020
Paul Boyd Skinner, Managing Director of No B*nk has spent his career over the last 16 years helping thousands of people and businesses secure non-bank lending.