News

Instant asset write-off extension welcomed

By Jamie Salter

Local machinery dealers have welcomed the extension of the $150 000 instant asset write-off scheme for six months to December 31, saying they expect it to help boost local businesses.

The extension comes after the threshold for instant asset write-off increased from $30 000 to $150 000 in March, and applies to businesses with an annual turnover of less than $500 million.

Shepparton's Bertoli Farm Machinery sales manager Paul Watt said increasing the threshold would stimulate the market and benefit farmers who work in Australia’s food bowl.

“Up until the change, if a farmer wanted to buy a tractor worth $80 000 or $90 000 they didn’t have the ability to buy that,” Mr Watt said.

“The $30 000 threshold was only relevant to motorbikes or RTVs but lifting that has allowed farmers to get into a higher asset value and be able to take the tax advantage.”

O’Connors Shepparton sales manager Kim Edgar said the threshold extension would help drive local businesses.

“It’s definitely had a positive impact in some areas and driven business,” Mr Edgar said.

“Supply has become an issue due to COVID-19, so it’s a very positive thing the government is doing.

“It extended the buying period which gives us more time to look at things; there’s a positive outlook at the moment with the current prices and the way the season is shaping up.”

The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets, provided each costs less than $150 000.