Instant Asset Write-off for Solar Systems until June, 2020

Posted by: Planet Ark Power
Category: Economic Stimulus Package

Government announces up to $150,000 Instant Asset Write-off, including Solar Systems

As a part of the Federal Government’s recently announced Economic Stimulus Package the instant asset write-off threshold has been increased from $30,000 to $150,000 until 30 June, 2020.

Businesses with an annual turnover of less than $500 million can access this tax deduction incentive. The Prime Minister said this would give businesses the “confidence” to go ahead and purchase and install equipment “because they will be able to write-off completely, 100%”.

This presents an ideal opportunity for businesses to instantly asset write-off solar systems of up to $150,000 purchased before the end of this financial year.

50% Instant Depreciation Write-off on Assets Over $150,000

‘Backing Business Investment’ is another new federal government incentive that accelerates depreciation deductions for eligible assets acquired from 12 March, 2020 and first used and installed by 30 June, 2021.

Businesses with a turnover of less than $500 million are able to deduct 50 percent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.

Planet Ark Power’s Finance Solution to Put Solar on Your Rooftop

Planet Ark Power can provide finance chattel mortgage solutions (note a finance lease will not work with this incentive) to assist in the procurement process and optimise your cash flow. The chattel mortgage is a conventional method by which Australian businesses finance their assets. It is a commercial finance product where a financier lends the money to buy an asset and the customer makes regular payments as agreed with the financier. The customer assumes ownership of the asset, but the financier has a mortgage over it until the loan is paid.

This solution 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 30 June, 2020.

Now is the time to switch to cheaper, solar energy at your business

With these new government incentives, it has never been a better time to invest in cheaper, cleaner energy for your business.

For more information go to: www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/Increasing-the-Instant-Asset-Write-Off and then contact the Planet Ark Power team using the form below or on 1300 323 221.