Government COVID-19 Stimulus Measure Update

Patrick Rowan & Associates is committed to bringing you additional information on the Government Stimulus Measure as it becomes available.

Instant Asset Write-Off

Subject to an aggregated turnover threshold of $500 million, eligible businesses will be able to instantly write-off the cost of assets up to $150,000.

This proposal applies from 12 March 2020 to 30 June 2020 (4 months) for acquisitions of new or second-hand assets first used or installed ‘ready-for-use’ within this timeframe.

Accelerated Depreciation

Eligible assets acquired from 12 March 2020 and first used/installed by 30 June 2021 (15 months) will qualify for a deduction of 50% of the cost of the asset as well as existing depreciation rules applying to the balance of the cost of the asset.

For example, ABC Pty Ltd purchases a item of Machinery costing $250,000 on 13 March 2020.  In the 2020 financial year, it will be able to claim the following:

  • Instant 50% Deduction: $125,000 (50% x $250,000)
  • Depreciation (Under Pooling Rules): $18,750 (15%x 250,000-125,000)
  • Total Depreciation at 30 June 2020: $143,750 (125,000+18,750)

Please note that these are proposed measures at this stage and are subject to change.  We will keep you up to date as further details become available.

If you have any queries, please contact our office to speak with one of our experienced Accountants  tel: 5221 7655.

This is is a general summary only. For more information, please speak with your Accountant.