News: Federal Government’s Instant Asset Write-off bonus deadline looming

In the recent Federal Budget, the Treasurer announced that the Instant Asset Write-off scheme introduced in 2020 to encourage businesses to keep spending during the COVID-19 pandemic, will continue until 30 June 2024, but at a much lower level.

There was an expectation that the scheme would end this year, but instead the Government has extended it, although at a lower rate.

This means there is still some urgency if you’re a small business owner and you want to take advantage of the current higher value benefit that ends on 30 June 2023.

Just to recap, the Instant Asset Write-off current limit is $150,000 and is available to businesses with a turnover of up to $500 million. From 1 July 2023 this reverts to the previous $20,000 Instant Asset Write-off scheme, and will be available to eligible businesses that have an annual turnover of less than $10 million.

The purpose of the Instant Asset Write-Off scheme is to accelerate the speed at which businesses can make deductions for those purchases. This allows business owners to claim a deduction for that asset in the same income year as the asset was purchased. This deduction is then able to be claimed on the business’ tax return for that income year.

It is important to note that you will need to have the assets installed and ready to use between 1 July 2022 and 30 June 2023 to be eligible for the current more generous limits. This makes a purchase like a Demmeler modular fixturing system from Leussink ideal because it requires limited installation.

It is also important to note that temporary full expensing, another version of the instant asset write-off scheme introduced in October 2020 that allows assets of any value to be immediately deducted, still expires on 30 June 2023.

The new (or updated) instant asset write-off scheme will be available to eligible businesses that have an annual turnover of less than $10 million. This means businesses will need to have the assets installed and ready to use between 1 July 2023 and 30 June 2024.

Eligible items

Included in the list of eligible items are tools, plant, and equipment so a Demmeler modular fixturing system from Leussink will be an eligible deduction for many businesses.

If you’re not in a financial position to make an outright purchase, you can trial a Demmeler system through Leussink's rental program. It’s the only program that allows you to try a modular welding table before you buy.

The Demmeler 3D workbench and welding table distributed by Leussink is a versatile jig and fixtures system for all types of welding and fabrication work. Projects such as steel construction, sheet metal processing, robot technology, assembly and measuring equipment, laser welding, laser cutting, prototype construction, body construction, and many others can be set up easily and precisely.

Many of our clients are upgrading from a plain metal workbench and finding that the Demmeler system saves them time but also increases their accuracy and precision.

At Leussink we don’t just sell tables and walk away. We work with our clients to make sure the Demmeler Modular Fixturing System works for them by providing onsite visits and follow-ups.

Want to know more? Contact us online or call 02 4260 7777.