Tradies and ANY small business can write off up to $150,000 instantly as scheme is extended by six months - so can you get some help?
- The government has extended the $150,000 instant asset write off scheme
- It allows business to buy as an asset and remove the cost from their profits
- Treasurer Josh Frydenberg says the extension will cost taxpayer $300million
The government has extended the $150,000 instant asset write off scheme until the end of the year.
The policy lets a business to buy as an asset worth up to $150,000 and immediately remove the cost from their profits, allowing them to pay less tax.
The previous limit of $30,000 was raised to $150,000 in March. It was supposed to revert back on 30 June but will now last until 31 December.
Treasurer Josh Frydenberg says the extension will cost $300 million and is expected to help about 3.5 million businesses.
'They will be able to go and buy equipment or machinery, other materials for their business - up to $150,000 - and write it off straight away,' he told Sky News on Tuesday.
The government has extended the $150,000 instant asset write off scheme until the end of the year
'They can buy a pizza oven, they can buy a coffee machine, they can buy a new truck, a new tractor - they can buy new materials for their business.'
Mr Frydenberg hopes the policy will encourage businesses to grow and invest as they prepare to emerge from the coronavirus pandemic.
'For a number of businesses it is very tough, but businesses aren't just looking at today, they're looking at tomorrow,' he said.
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The policy applies to businesses with annual turnovers of up to $500 million, up from $50 million.
Businesses can benefit from the instant asset write-off multiple times if they buy several assets which are each under $150,000.
The asset needs to be used or ready for use by December 31.
The grants are available for renovation works that cost between $150,000 and $750,000. Pictured: A house being built in Cobbitty in Sydney
It comes after the government announced the HomeBuilder scheme to give people $25,000 to renovate their homes or build a new house.
Australians can get the cash sent directly to their bank accounts from Thursday under Scott Morrison's new 'HomeBuilder' scheme designed to rescue the country from its first recession in 29 years.
The grants are available for renovation works that cost between $150,000 and $750,000 and for new homes valued at less than $750,000.
Renovations must improve the 'livibility' of the home, meaning swimming pools, tennis courts, outdoor spas and saunas, and detached sheds or garages do not count.
The house being renovated must not be valued at more than $1.5million and must be the applicant's primary residence, meaning investment properties do not qualify.
To get the cash, applicants must earn less than $125,000 or be in a couple earning less than $200,000.
Scott Morrison (pictured at the under-construction western Sydney Airport) will today announce an extraordinary scheme to give $25,000 cash grants for renovations
The applicant must pay a licensed builder the first installment for starting work and then can apply to their state or territory revenue office for the $25,000.
After checking all the criteria is met, officials will transfer the cash directly into the applicant's chosen bank account.
Prime Minister Scott Morrison said: 'If you've been putting off that renovation or new build, the extra $25,000 we're putting on the table along with record low interest rates means now's the time to get started.'
In total, the policy is expected to cost $688million and provide work for 140,000 tradies and another 1million workers in the supply chain.
'This investment isn't just about helping Australians bring their dream home to life, it's about creating jobs and helping support the more than one million workers in the sector including builders, painters, plumbers and electricians across the country,' Mr Morrison said.
The scheme lasts from 4 June 2020 until 31 December 2020.
The government has implemented strict criteria on who can do the building work after the Rudd government's so-called 'pink batts' scheme led to disaster.
Australians can get $25,000 sent directly into their bank account from Thursday under the Morrison government's new 'HomeBuilder' scheme
