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Corona Virus Support for Business with Instant Asset Write Off
The current state of the coronavirus pandemic has put a lot of stress on businesses. With people forced indoors and social isolation now a part of everyday life, commerce has come to a grinding halt for many industries, and significantly reduced for others.
Technological solutions are available for organizations that allow them to continue to trade during the crisis.
Roger, from Mitronics, says that the government is stepping up to help as many businesses as possible get through the ongoing crisis by significantly increasing the Instant Asset Write-Off (IAWO).
Companies with an aggregated annual turnover of less than $500 million can access an instant write-off with an updated threshold of $150,000. The new limit has been in effect since March 12 and will continue until June 30, 2020. Both new and second-hand assets qualify under the new scheme.
Organizations can take advantage of the new IAWO threshold to find some relief from the restricted cash flows brought about by the pandemic and the new economic climate. Immediate deductions of up $150,000 are available for eligible assets, and multiple assets can be written off at a time.
Who is Eligible?
In addition to the limit on aggregate turnover mentioned above, other considerations for eligibility include the date of purchase for the asset and when it was first installed or used.
Also, the cost of each asset needs to be lower than the prescribed threshold, which can be found here on the ATO website.
Organisations should check whether they are eligible as the government has released new criteria.
After July 1 the write-off will only be made available to small businesses with a turnover of less than $10 million, and a new threshold of $1,000 will be implemented.
Surviving the Pandemic Through Innovation
Social isolation is creating a new era in remote working. With the extra incentive offered by the government, organisations are in an excellent position to take advantage of technology to keep the cash flow moving. With the amount of uncertainty in the market today, keeping more people employed will help create stability and pave the way for faster recovery when things return to normal.
Roger says that Mitronics has everything today's worker needs to prevail through the current conditions and continue working in a remote capacity. Software solutions for document storage and retrieval, printers, and computers all qualify for the increased threshold for IAWO.