COVID-19 Government Stimulus Package Explained with Kochie

April 21, 2020

Kochie explains the key points of the Australian Government Economic Stimulus Package.

Including the Instant Asses Write – Off Threshold.


What is included in the Stimulus Package?

1. Instant Asset Write-Off – Immediate tax write-off of a new or second-hand asset up to the value of $150,000 (previously $30,000) if the asset is installed and ready for use by 30 June 2020.

2. Backing Business Investment – Immediate 50% tax write-off of a new asset of unlimited value, purchased and delivered between 1 July 2020 to 30 June 2021, with existing depreciation rules for the balance of the asset value.

However, current Australian taxation legislation provides that the depreciation limit for a motor vehicle defined as a car* is up to $57,581.

For example, this means that cars below $57,581; like YarisCorollaCamryC-HR & RAV4 may be eligible for a 100% Instant Asset Write-Off if delivered by 1 July 2020.

Vehicles above 1 tonne carrying capacity such as our HiLux 4×4 Single-Cab Cab-Chassis, may be eligible for a 100% write-off up to $150,000.