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Until the economy rebounds, Australian businesses can still grow their bottom line

In response to the Coronavirus, last week the Australian government announced a sweeping list of benefits for businesses, including 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, there is a strong reason for businesses to take advantage of these tax breaks.

Key highlights:

  • 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 30 June 2020.
  • Businesses to claim 50% of depreciation costs (no maximum threshold) if approved project is delivered by 30 June 2021

According to the government, the revised tax write-off – available until June 30, 2020 – opens up numerous options for businesses including making investing in renewable energy solutions more financially beneficial for businesses.

Following 30 June 2020, the tax write-off is scheduled to reduce to $1000 (turnover less than $10 million) for purchases after July 1.

Tax discount example of a $100,000 cap-ex solution:

  • Pre June 30 = $27,500 tax saving
  • Post June 30 = $13,750 tax saving

Hear from our CEO Christopher Dean discussing the stimulus package:

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

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

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.

Secure your commercial solar assessment now:

The revised instant-asset tax write off scheme expires 30 June 2020. In order to benefit, the project must have started 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.

For more information, please visit business.gov.au:

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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