Quick Facts To Understand the Economic Stimulus Package

economic-stimulus-package-Aussie-dollars

Here are some quick facts to assist in understanding what is now available from March 12th 2020 via the Economic Stimulus Package.

Both of the 2 initiatives shown below are available to all businesses with an annual turnover of LESS than $500mil.

$150,000 Instant Asset Write Off

  1. Any eligible asset (vehicles, machinery etc) with a purchase price of $150,000 or less (excluding GST) acquired from March 12th to June 30th 2020
  2. Assets can be NEW or USED (including Private Sales)
  3. The $150,000 limit is available for each individual asset and therefore multiple assets (totalling more than $150,000) can be claimed under this arrangement
  4. There is no limit to the number of assets acquired under this initiative
  5. Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative)
  6. FAST TRACK (No Financials) Finance is available on most assets across a broad range of Financiers
  7. This initiative is ONLY available until June 30 2020 and as such is a very small window of opportunity being less than 4 months

50% Instant Depreciation Write Off (on assets over $150,000)

  1. Any eligible asset (vehicles, machinery etc) with a purchase price GREATER THAN $150,000 (excluding GST) acquired from March 12th to June 30th 2021
  2. Assets MUST be NEW (NOT USED)
  3. There is NO LIMIT to the number of assets acquired under this initiative
  4. Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative)
  5. FAST TRACK (Replacement Policy) Finance is available on many of these larger assets across a broad range of Financiers
  6. This initiative is available for 15 months (until June 30 2021)
  7. This extended initiative will also be applicable to assets of $150,000 or less for an extra year once the $150,000 Instant Asset Write Off has expired on June 30 2020.

If you would like to know more, the Government Fact sheet here provides an excellent explanation with many clear examples.

The team at Finlease is well resourced and ready to assist any clients and suppliers to put in place any finance approvals which may be needed to take advantage of the significant tax breaks available under these programs. You can claim a free financial health check here, where a Finlease team member will help you take advantage of these new packages.

Get a Free Financial Check

iSeekplant-and-finlease-logos

To stay up to date with all the latest industry and project news, subscribe to iSeekplant's Flapping Mouth blog today!

Subscribe to receive news on projects as it happens

Get the latest updates in Major Projects and Industry News straight to your inbox