Page 20 - Print21 May-June 2020
P. 20

Business Intelligence
   Instant business booster
 Among the raft of new stimulus packages from the Australian government is the $150,000 instant asset write-off. Print21 looks at what it is, how you get it, and what it means.
There has never been a better time to invest in production equipment. The new coronavirus- driven instant asset
write-off of up to $150,000
means that print business owners effectively receive an instant 27.5 per cent discount on capex. But you’ll need to be quick, the scheme finishes 30 June this year.
And there is a whole host of great print production equipment that comes in at less than $150,000, with many digital colour print systems, wide format systems, and finishing kit all available below the cut off.
For investments in kit over that amount, there is a 50 per cent instant depreciation, which is similarly attractive. Both these schemes are effectively bringing forward depreciation from future years, but nonetheless represent a significant incentive to buy now.
The $150,000 translates to a $41,250 discount on a piece of kit that you buy for $150,000, providing that your net profit for the year is at least $150,000.
For bigger purchases, the benefits are even larger. If, for instance, you bought a $2m offset press, you could depreciate 50 per cent of that against this year's profits. So if your profit was $1m then you would be saving yourself an instant $275,000 on the cost of that new press.
The instant asset write-off scheme has been in place for five years, initially at $20,000 a year, then it went to $30,000, now the Covid-19 environment has seen the Morrison government supercharge it, in an effort to keep business moving.
The instant asset write-off has always been popular with small
and medium sized business, but
now it gives printers real benefit on more than computers and cars. It is expected to cost the taxpayer $2.5bn over the next two years.
The caveat is that, as of time of writing, the $150,000 scheme will end on 30 June this year, although the 50 per cent depreciation scheme runs until 30 June next year. And by those dates the equipment has to be in and running, not just on order. The suppliers are not short of stock.
   Q&A: $150,000 scheme
  What is it?
The $150,000 instant asset write off.
Who qualifies?
Any business with turnover less than $500m.
When does it run from?
12 March this year.
When does it run to?
30 June this year.
Is that when kit has to be ordered by or installed? Installed.
How do I claim?
On your tax return as usual.
Who pays?
It will cost the taxpayer $2.5bn.
What qualifies?
Virtually anything a print company would need.
Is it just for one asset?
No, multiple assets for multiple $150,000s can be claimed for.
Is it only for new kit?
No, it can be for pre- owned equipment.
What happens if I miss the 30 June deadline? The instant write- down will then be 50 per cent.
What if the kit I want is more than $150,000? The instant write- down on $150,000+ kit is 50 per cent.
  20   Print21 MAY/JUNE 2020





























































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