Government extends asset write-off scheme

The government has extended the instant asset write-off scheme until December 31, 2020, a move that has been applauded by The Australian Refrigeration Association (ARC).

The ARC says that giving businesses six more months to immediately claim on purchases up to $150,000 represents a win for refrigeration and air conditioning (RAC) contractors.

The instant asset write-off scheme enables small and medium-sized businesses to deduct the value of an asset in the year of purchase – freeing up cash now, instead of having to claim deductions over several years.

ARC CEO Glenn Evans says that the extension will help to increase investment and keep businesses moving, in light of the uncertainty created by COVID-19.

“It is also great to see that new and second-hand assets, like vans and equipment, can now be written off under the scheme, as long as they are first used, or installed ready for use, by the end of the year,” he says.