To encourage businesses to keep spending during the COVID-19 pandemic, the Federal Government has lifted the instant asset write-off limit to $150,000 and extended it to businesses with a turnover of up to $500 million, from $50 million.
This scheme has previously been in play but at a much lower level. The purpose of the $150,000 Instant Asset Write Off 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 business is then able to claim this deduction on its tax return for that income year.
At a time like this it would be very easy just to cut all expenditure but we’re optimistic about the growth the Australian manufacturing, mining, building, and many other sectors will experience as we come out of the COVID-19 pandemic so we’re investing in our future and encouraging others to do the same.
At Leussink, it’s still business as usual, however we will definitely be taking a closer look at this opportunity. We also encourage our clients to examine the benefits of the stimulus and to act now, well before the cut-off date of 30 June 2020, to check eligibility. To be eligible to write off your new assets, they must be either installed and in-use, or purchased and ready for use in the same financial year as it was purchased.
Demmeler system qualify for COVID-19 instant asset write-off bonus
Included in the list of eligible items are tools, plant, and equipment, meaning our Demmeler Modular Fixturing System will be an eligible deduction for many businesses.
The Demmeler 3D workbench and welding table distributed by Leussink is a versatile, modular 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 not only saves them time but also reduces rework and increases accuracy and precision. Find out more about how one of our clients, Vawdrey Australia, has managed to increase efficiencies and improve their turnaround time by 20 per cent.
Want to know more? Contact us at https://www.leussink.com.au/contact or phone 02 4260 7777.