Need Savings on Computer hardware and software?
Updated: May 20, 2020
The Morrison Government has announced a $17.6 billion economic plan to keep Australians in jobs, keep businesses in business and support households and the Australian economy as the world deals with the significant challenges posed by the spread of the coronavirus.
Of particular interest to this audience is that from the 12thof March 2020 they are providing an increase to the instant asset write off threshold from $30,000 to $150,000 and expanded access to include businesses with an aggregated annual turnover of less than $500 million (up from $50 million) until the 30th of June 2020. For example, assets that may be able to be immediately written off are computer hardware and software packages used for business. Note that cloud-based infrastructure and subscription-based software are not included in this. Such costs are deductible in the year incurred.
If you buy an asset before 30th of June 2020, that comes under the threshold of $150,000, you can claim the business portion, all of it if we are talking about SYSPRO and the hardware to run it on, of the asset’s use in your tax return for the 2019-20 financial year.
Also, there is an Investment incentive for New Assets where businesses will be able to immediately deduct 50% of the cost of a new asset or installation of such should the asset be operational before 30th of June 2021.
You should talk to your accountants but there is real value in this initiative.