As we continue to adapt to life in the time of the Coronavirus, it is essential for everyone to look at the numerous ways the Australian government is attempting to assist us through this trying time.
Various national, state, and local government initiatives aimed at relief for individuals and businesses are a part of the financial landscape. While multiple programs are familiar to many Australians, there are quite a few fine details that may not be widely apparent. Here at Fox Transportables, we want our customers to be aware of every possible avenue of assistance during the pandemic, as we are all in this terrible situation together.
One particular portion of the stimulus package comes from the Australian Government’s Australian Taxation Office. The ATO revealed a plan known as the increased instant asset write-off for eligible businesses. The plan has the potential to be very useful for those businesses in need of transportables.
What is the Australian Taxation Office’s Increased Instant Asset Write-Off?
The instant asset write-off increase is a temporary measure by the Australian government to assist businesses during Coronavirus pandemic.
As the economy is reeling from the impact of measures necessary to help stop the spread of Covid-19, the government has amended the former threshold for instant asset write-offs (IAWO).
The terms of the previous IAWO included businesses with $50 million or less in aggregated annual turnover and allowed for an instant asset write-off of up to $30,000 on eligible assets.
From 12 March 2020 through 30 June 2020, the ATO adjusted these caps so more businesses can benefit from the write-offs and the amount of the write-offs can be greater. Under the new guidelines, businesses with up to $500 million or less in aggregated annual turnover can apply an amended instant asset write-off of $150,000 on eligible assets. If you believe you are eligible for this benefit, contact the Australian Taxation Office.
What Changes After 30 June, 2020?
Beginning 1 July 2020, the instant asset write-off will no longer be available to businesses with an aggregated turnover greater than $10 million. Additionally, the July changes include a decrease in the amount of the instant asset write-off threshold. The amended amount will be $1,000.
What Assets Are Excluded?
The ATO guidelines list several assets deemed excluded from eligibility the IAWO program include:
- Horticulture plants. The government defines these as a living plant or fungus that is principally grown or reproduced for the use or consumption of any or all of its parts. Grapevines are a part of this exclusion category.
- Capital Works Deductions
- Software that is a part of or allocated to a software development pool
- Assets leased (or presumed to be leased) for more than 50 per cent of the time as part of a devaluing asset lease
- Assets assigned to a low-value assets pool prior to the use of simplified depreciating rules
Take Advantage of the Increased Instant Asset Write-off Soon
According to the Australian Taxation Office (ATO), in order to take advantage of the Instant Asset Write-Off (IAWO), a business must:
- Obtain new or second-hand assets between 12 March 2020- 30, June 2020
- Have new or second-hand assets in use by 30 June 2020
- Have the new or second-hand assets installed or otherwise ready for use by 30, June 2020
How I Can Use Transportables in My Business?
We carry an impressive selection of new and second half transportables that are flexible and customisable. Some of the most popular uses for Fox Transportable products include:
- Mining Accommodation – Our transportables are second to none when used in the mining industry. Not only do we provide quality Australian-made products, but we are also happy to work with you and design the most functional and affordable mining camp possible. In addition to comfortable mining accommodation, we can equip kitchens, dining halls, laundry facilities, first aid huts, shower and toilet facilities, storage, and specialised accessible units.
- Seasonal Worker Accommodation – As with our accommodation for mining workers, Fox Transportables can help you create a clean and comfortable environment for farmworkers.
- Other Commercial Uses – Many of our clients at Fox Transportables use our portable buildings for additional office space and also for climate-controlled storage for essential business items.
An additional benefit for our customers taking advantage of the instant asset write-off increase for businesses is the fact that second-hand assets can qualify as eligible purchases. Fox Transportables has an excellent selection of portable buildings in immaculate condition. Our stock includes:
- Worker Accommodation
- Laundry facilities
- Offices
- Kitchen facilities
You can see the second-hand transportables currently in stock here. Additionally, if you are looking for a specific type of building not listed on our second-hand portables page, feel free to call us on (08) 6117 5774 and enquire.