Economic Stimulus Package for Business Investment in Response to Coronavirus
The Australian government recently announced that they would be offering a stimulus package to help stabilise the economic pressure that the Coronavirus is setting on the world. This package will enable increased subsidies, cash flow support for employees, support for business investment all in turn allowing for economic spending to keep the Australian economy humming.
Instant Asset Tax Write Off – Stimulus Package
The instant asset write off threshold which is usually $30,000 has been increased to $150,000 for businesses that have an aggregated annual turnover of less than $500 million up from the previous $50 million. This will be available from 12 March 2020 until 30 June 2020 for all new and second-hand purchases that are used or ready to be used within this timeframe. This package is primarily aimed at funding small and medium businesses.
Backing Business Investment Incentive
If the purchases are not installed or used in this timeframe there is the alternative option of the backing business investment incentive. This incentive is time limited until 30 June 2021, it aims to support small and medium business growth in the short term. Businesses with an aggregated annual turnover of less than $500 million can deduct 50 per cent of the cost of a qualified asset upon installation if it was attained after 12 March 2020 and used or installed by 30 June 2021. This incentive has no value threshold for the 50% investment.
Our Offer – Equipment & Tools
Keeping this stimulus package aimed at increasing investments in the economy in mind, we are offering businesses a range of equipment and tools that they can utilise to improve their current business processes and take some weight off of their financial burdens during this difficult time.
Hot Dip Galvanised Trailers
Our range of products are suitable for all kinds of businesses in the trade, hire, manufacturing and event industries. The full catalogue of in stock items that can be claimed as a part of the instant asset tax write off package can be viewed here: https://issuu.com/a2btrailers/docs/a2binstockbrochurenew.
Portable Buildings & Bathrooms
A range of portable buildings and bathroom options are available for ordering and can be claimed as a part of the ‘Backing Business Investment Incentive’ allowing for 50 per cent deductions on the total cost if obtained after 12 March 2020 and used or installed by 30 June 2021. These products incur a 16 week lead time on manufacturing and delivery from Denmark rendering them unobtainable under the instant asset tax write off deadline but attainable under the ‘Backing Business Investment Incentive’.
Benefits of Buying Equipment Under The Stimulus Package Tackling Coronavirus
There are obviously several benefits to buying equipment and tools under these new stimulus packages to tackle the coronavirus economic downturn.
⚫ Improvement of Business Processes
⚫Huge Investment Savings
⚫ Complete Ease of Use
⚫ Massive Return on Investment in Resale Value
⚫ No Planning Permission Required for Portable Buildings
⚫ Costs can be offset
In addition to all this ‘Primary Producers’ have the opportunity of receiving 50-55% reductions in their registration costs. It is important to always refer to your accountant or financial team when making purchasing decisions on behalf of the business. For further enquiries please contact us.