A plan to increase cash flow will extend the deadline, and companies with an annual income of no more than A$500 million will be allowed to continue to write off new purchases worth up to A$150,000. At the beginning of the economic impact of coronavirus in March, the federal government significantly expanded the scope of the immediate asset write-off program.
The plan changed from allowing companies with an annual income of 50 million Australian dollars to cancel purchases of less than 30,000 Australian dollars to allowing companies with an annual income of 500 million Australian dollars to deduct purchases of less than 150,000. Finance Minister Josh Frydenberg said today that the plan originally scheduled to end on July 1 will continue until the end of this year.
Without the plan, companies will have to deduct asset depreciation in several tax returns. However, with the implementation of the plan, eligible companies can deduct the full purchase cost of no more than A$150,000 from the fiscal year tax payment for the purchase of assets. The plan can be applied to a variety of assets worth less than 150,000 Australian dollars, the government said 3.5 million companies will benefit from the plan. The government said it has not been able to provide information about the success of the plan in recent months after the expansion, because the information was collected in the company’s tax returns, which have not yet been submitted. Frydenberg said: “Thousands of companies have already participated in the previous stage of the plan. We will know the degree of participation after the end of this fiscal year.”
The extension of the plan is expected to cost A$300 million in the next four budget years.
https://www.abc.net.au/news/2020-06-09/government-extends-asset-write-off-tax-time-boost/12334398