Are you taking advantage of the Instant Asset Write-Off?
25 May 2022
What is the Instant Asset Write Off?
The incentive was introduced to drive investment and assets. It is typically for assets purchased up to a value of $150,000. There is no limit to the number of assets that can be purchased (at the $150K limit).
Who qualifies for Instant Asset Write-Off
The incentive is aimed at small to medium-sized companies, but given the high qualifying aggregated turnover amount of less than $500 million, many larger businesses will qualify for the incentive too.
What does this mean for your business?
Normally if you buy a forklift, you could only claim the depreciation of the asset over the time that you own it, usually around 5-7 years. Now with Instant Asset Write Off, businesses can claim the depreciation as one upfront payment at the end of the financial year in which it is purchased. This will increase your expenses and in turn, reduce the amount of tax owed this year.*
This can also be a great opportunity for businesses to bring forward investment decisions that would have otherwise not been possible. Allowing your business to benefit from the productivity of a new forklift or forklift fleet, years ahead of schedule.
What do we recommend for businesses?
- Audit your operations and establish if a new forklift will aid in productivity and efficiency.
- Discuss the Instant Asset Write Off with your accountant and determine if your business will benefit from this incentive.
- Speak to your local dealer about financing options and stock availability.
- Decide as soon as possible before 30 June, as the asset needs to be purchased and first used within the financial year of the claim.
*Independent advice from your accountant is necessary as this is general advice.
Many workplaces in Australia use forklifts to lift, stack, and transfer loads. However, they continue to cause workplace deaths and injuries yearly, resulting in high financial and human costs for workers, industry, and the community.
You’re in the market for a forklift, you may already know which type of forklift you need but now you need to decide which brand of forklift is best for your business. As it is a capital investment, it is wise to carefully consider which brand you are investing in.