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Mar
25

Government Support for Business Investment

Posted by Applied Machinery Australia   

The Australian government has announced an Economic Stimulus Package to support business investment, in a move to help businesses withstand and recover from the Coronavirus crisis, as well as to encourage economic growth in the country.

Part of the measures include an increase of the instant asset write-off (IAWO) threshold from $30,000 to $150,000. This IAWO is now available to ALL businesses with an aggregated annual turnover of less than $500 million (up from $50 million previously).

The government is also accelerating depreciation deductions in a time limited 15-month investment incentive, allowing the deduction of 50 percent of the cost of an eligible asset on installation.

Here are 7 quick facts to assist in understanding what is now available:

 

Instant Asset Write Off (for machinery purchase up to $150,000)

  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
  1. Asset can be NEW or USED (including Private Sales)
  1. 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
  1. There is NO LIMIT to the number of assets acquired under this initiative
  1. Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative)
  1. FAST TRACK (No Financials) Finance is available on most assets across a broad range of Financiers
  1. This initiative is ONLY available until June 30th 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 2020 to June 30th 2021
  1. Assets MUST be NEW (not used)
  1. There is NO LIMIT to the number of assets acquired under this initiative
  1. Assets can be purchased outright or financed on Chattel Mortgage or CHP (Finance Lease will not work for this initiative)
  1. FAST TRACK (Replacement Policy) Finance is available on many of these larger assets across a broad range of Financiers
  1. This initiative is available for 15 months, until June 30th 2021
  1. 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 about how this stimulus package can assist your business in capital equipment purchases, please refer to this Government Fact Sheetfor more in-depth explanation and examples.

This is a great opportunity for your business to invest in quality machinery to support your business and drive activity in this challenging time.

At Applied, we’ve invested considerably in stock machines. We have well in excess of 50 new and used machines here in stock and available for immediate sale and delivery across the country …. the vast majority of which fall under the $150,000 threshold for instant asset write-off. If you’re considering an investment in additional technology and capacity for your business, act now and enjoy a massive saving on your 19/20 tax bill.

 

✅ Pressbrakes

✅ Guillotines

✅ Shredders

✅ Granulators

✅ Bandsaws

✅ Panbrake folders

✅ CNC & conventional lathes

✅ Pressbrake robots

✅ Section rolls

✅ Plate rolls

✅ CNC plasmas (in containers arriving very soon!)

✅ Hydraulic mould presses

✅ Fiber Lasers

 

To find the machine that will best suit your requirement, please speak to our team today.

Get in touch on 03 9706 8066 or email sales@appliedmachinery.com.au.

Applied Machinery supplies both new and used machinery for the sheetmetal, engineering, plastics and recycling industries. We stock premium machinery brands such as Yawei, Genox, Hurco, Polystar, Fimic, Hyundai-Wia, Hwacheon, Kitamura, Weber and more.