TRADIE TAX TIME 2020
On 12 March 2020, the Australian Government released an Economic Stimulus Package in response to the Coronavirus (COVID-19). This package will be effective from 12 March 2020 to 30 June 2020.
So what does this mean for you & your business?
Below is a summary of the tax incentives the Government has implemented:
Instant Asset Write Off Increased
• The instant asset write off will be increased from $30,000 to $150,000 for businesses with an aggregated annual turnover of less than $500 million (from $50 million).
• The threshold will revert back to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.
Items that can be claimed are the following:
- Power Tool Kits
- Ladders and Scaffolds
- Tool Kits
- Pressure Cleaners
- Nail Guns
Backing Business Investment
- The Government is introducing a 15 month investment incentive (through to 30 June 2021) by accelerating depreciation deductions.
- Businesses with an aggregated annual turnover of less than $500 million will be able to deduct 50% of the cost of an eligible asset upon installation – provided it was acquired after 12 March 2020 & first used or installed by 30 June 2021.
Boosting Cashflow for Businesses
- The government will provide up to $25,000 back (with a minimum payment of $2,000) to eligible small to medium size businesses that:
- Have an aggregated annual turnover of less than $50 million; &
- Employ staff between 1 January 2020 & 30 June 2020.
Supporting Apprentices & Employees
- Eligible employers can apply for a wage subsidy of 50% of apprentice’s or trainee’s wage for up to 9 months from 1 January to 30 September 2020, up to $21,000 per apprentice.
Along with the above Government assistance, Tools Warehouse can assist you &/or your business with:
- All your Power Tools, Hand Tools & Machinery needs
- Australia’s largest one stop tool shop offering the following range of BUY NOW PAY LATER payment methods:
- Zip Money
For further information about the Economic Stimulus Package, please refer to https://treasury.gov.au/sites/default/files/2020-03/Overview-Economic_Response_to_the_Coronavirus.pdf or consult with your Registered Tax Agent/Accountant.
Need some help in knowing what is deductible for you &/or your business. We have gathered some handy links below: