In response to the Coronavirus (COVID-19) pandemic, the Australian government announced a sweeping list of benefits for businesses.

This included raising the Instant Asset Tax Write-Off to an unprecedented $150,000, a 5 x increase for businesses with a turnover of less than $500 million.

For businesses looking to sustainable solutions to keep their operational costs down, this tax break offers a unique opportunity to invest in an asset that manages those costs through periods of uncertainty and beyond.

Key highlights from the Federal Government's stimulus package include:

+ Instant asset write-off raised from $30,000 (with a turnover of less than 50 million) to $150,000 with a turnover of less than 500 million before 31 December 2020.

+ Businesses to claim 50% of depreciation costs (no maximum threshold) if approved project is delivered by 30 June 2021

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How does this benefit my business?

According to the government, the revised tax write-off – extended until 31 December 2020 – opens up numerous options for businesses including making investing in renewable energy solutions more financially beneficial for businesses.

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What about solutions past 31 December 2020?

As long as it is installed and delivered by June 30 2021, you get a 50% instant asset write off and the balance 50% will be depreciated at the current/standard method, which for solar is around 10% per annum.

A cash example of this would be a $500,000 solution would gain $250,000 instant asset write off, or $68,750 at a 27.5% tax rate and the balance of $250,000 would be depreciated per standard depreciation rules.

Better still, we can help you fund your solar system without putting any money down or purchasing the front system up.

In the current climate you may feel less willing to invest in solar - Don't worry, we believe financing solar systems, so that the system can be paid for without an upfront investment is actually the way forward.

This allows you to get funding for solar, get the tax write-offs, and put no cash into the solution as the savings the system creates on your electricity bill is often more than the payments.

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Hear from our CEO Christopher Dean discussing the stimulus package:

This benefit is a game changer. But there is a limited window to act.

Following the 31 December 2020 deadline, the tax write-off is scheduled to reduce to $1,000 (for turnover less than $10 million).

The revised instant-asset tax write off scheme expires 31 December 2020. In order to benefit, the project must be delivered before this date. It can take several months to receive grid approval from the energy distributor, so we encourage all businesses to get in touch this month.

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The Choice Energy difference

Choice Energy is an energy firm dedicated to helping businesses by reducing their operational costs optimising their energy charges through a range of solutions and services.

As a champion for Australian business, we create bespoke solar solutions with a focus on reducing your energy costs with minimal to no impact on cash flow. We do this by providing a solution that utilises the savings from energy bills (post solar) coupled with government funding.


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NOTE: The information provided on this website is general in nature only and does not constitute personal or commercial financial or taxation advice. The information has been prepared based on our interpretation of the IAWO program and has not taken into consideration your personal or business objectives, financial situations or needs. Before acting on any information on this website, or others, you should consider the appropriateness of the information with regard to your personal or business objectives, financial situations or needs. Speak to your Accountant, Tax Advisor or the Australian Tax Office for any questions you may have with regard to the application of the Instant Asset Write Off for your business.

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