Tax-Time 2020

Tax-Time 2020

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:

  1. Drills
  2. Power Tool Kits 
  3. Ladders and Scaffolds
  4. Toolboxes
  5. Tool Kits
  6. Pressure Cleaners
  7. Nail Guns
  8. Grinders


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:
  1. Have an aggregated annual turnover of less than $50 million; & 
  2. 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:
  1. AfterPay
  2. Zip Money
  3. Humm
  4. LatitudePay
  5. OpenPay
  6. LayBuy 
  7. Paypal

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:


ATO

  •  https://www.ato.gov.au/General/Tradies---be-certain-about-what-you-can-claim/ 
  • https://www.ato.gov.au/Individuals/Income-&-deductions/Deductions-you-can-claim/Clothing,-laundry-&-dry-cleaning-expenses/#Protectiveclothing1


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