There is great news for retailers of cars, motorcycles, farm and industrial implements, as the Federal Government has announced not only an extension to the instant asset write-off to mid-2020, but an increase to the threshold from $20,000 to $25,000.
This write-off is available for new and second-hand purchases of any capital asset, so there is potential for members to increase sales as well as receive a handy tax break.
The government will be seeking to legislate the change when Parliament resumes on the 12th of February.
For car dealers particularly, the additional $5,000 threshold should open up more opportunities as there should be both more models available, and the opportunity to include accessories in the sale.
Members are urged to remind potential purchasers to seek their own accounting advice on this matter.
If you have any questions about the extension and increase, click here to contact the MTA’s Industry Engagement Specialist for our retail divisions, Nathan Groves.