What the Economic Stimulus Package means for your Business
A quick look at parts of the Economic Stimulus Package announced for business.
As the impacts of the Corona virus continues to invade into each and every Australian business the Federal and State governments are announcing measures designed to stimulate the economy and support business. We expect that there will be ongoing announcements and support packages, and we will try to keep you up to date as these are announced.
This time we will focus on the small business instant asset write off scheme and the instant depreciation write off scheme.
Purchases up to $150,000 (ex GST)
- Purchase cap lifted from $30,000 to $150,000 (ex GST)
- Eligibility has been lifted to include businesses with turnover up to $500 million
- For purchases between 12 March 2020 to 30 June 2020
- The scheme includes any eligible business asset – new or used – and can include private sales
- The $150,000 cap is per purchase, and businesses can make multiple purchases
- Purchases can be cash, or financed via Commercial Hire Purchase or Chattel Mortgage – not a Finance Lease – so speak to your accountant of financial adviser
Provided that you meet the usual lenders requirements many of these purchases can be financed on a lo doc / no doc basis – meaning that in most cases you do not need to provide your financial details (profit and less etc).
Purchases over $150,000 (ex GST)
- Eligibility has been lifted to include businesses with turnover up to $500 million
- For purchases between 12 March 2020 to 30 June 2021
- The scheme includes any eligible new business asset
- Businesses can make multiple purchases
- Purchases can be cash, or financed via Commercial Hire Purchase or Chattel Mortgage – not a Finance Lease – so speak to your accountant of financial adviser.
Depending on your circumstances some of these assets may be financed on a lo doc / no doc basis, but due to the size of these purchases you may need to provide your financials.
Want to know more? You can visit the Treasury website for more information or call us on 1800 734 346 and we will connect you with one of our experienced equipment finance specialists.