The current Instant Asset Write-Off program finishes in just 5 weeks!

If you are thinking of purchasing an asset for your business, you should think about doing it before June 30!


What is the Instant Asset Tax Write-Off scheme?

Under the instant asset write-off, you can write off the full amount you spend on an asset [used for business purposes] in the financial year you purchased it, giving you a tax deduction for the full cost of the asset immediately.

Before the program was introduced, you would need to depreciate a portion of the cost each year, over several years. For many assets, this was four years – so if you purchased an asset for $50,000, you could only deduct $12,500 each year for four years under depreciation rules determined by the ATO.

Originally, the instant asset write-off was limited, with a $1,000 threshold per asset. This meant you could only deduct the first $1,000 of any business asset purchase. In 2015 the threshold was increased to $20,000, followed by an increase to $30,000 per asset in 2019, and then finally $150,000 in 2020.

However, in late 2020, and in response to the COVID-19 pandemic, the threshold was removed altogether – meaning there is currently no limit on the amount you can claim as an immediate deduction for your business.

But this is all about to end on July 1 2023, when the instant asset write-off scheme will revert back to a threshold of just $20,000!


What assets can I buy and get a deduction for?

The instant asset write-off applies to almost all depreciating new assets and costs of improvements for your business, including;

  • tools and equipment
  • machinery
  • technology – computers, laptops, printers etc.
  • fixtures and fittings
  • office and shop furniture
  • office equipment
  • motor vehicles – cars, vans and tractors etc.

Note: Small and medium businesses with an annual turnover of less than $50m may also claim an immediate tax deduction for the cost of eligible second-hand assets.


Financing your asset purchase!

If you’re hoping to take advantage of the instant asset write-off but need funding we can help!

We have a range of traditional vehicle & equipment financing options that may suit your business needs.

We also work with a panel of 7 of Australia’s best unsecured business lenders and can help you access loans from $5,000 to $500,000 with cash flow friendly repayments.

All you need is an ABN and 3 months bank statements and you can borrow up to 200% of your monthly turnover.

Best of all you don’t need to provide any financials or security and loans can be approved and funded within 24 hours.

>> To apply for an unsecured business loan click here


Reducing your 2023 tax bill…

Financing the purchase of a business asset means you get the benefit of a large tax deduction today [ie, less taxable income and therefore tax to pay in 2023], with no upfront cost. Instead, you pay for the asset over the loan term using cash flow from your business. [Note: Any loan interest you pay on the loan is also tax deductible.]

Depending on your circumstances you might even make a tax loss for the 2023 financial year as a result of claiming the instant asset write-off. If you are a corporate tax entity, then instead of carrying the tax loss forward and using it to offset your future income, you might be eligible for a refundable tax offset under loss carry back.

This means if you paid tax for the 2022 tax year you would be able to get some or all of it back from the ATO. For more –

>> To apply for an unsecured business loan click here


Why Xpress Business Loans?

We understand business owners are passionate about their business which is why we look beyond just ticking boxes. All our lender partners have an open-minded approach to credit and when assessing applications look for ways to approve deals, not decline them.

For more details and to apply click here

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