Both the New Zealand & Australian governments have announced economic stimulus packages which can be of benefit to farmers and agricultural contractors. While each differ from the other we will give you a broad outline of each below with relevant links to other helpful resources.
New Zealand: Low value instant asset write off threshold increased to $5,000
Instant asset write off measures for New Zealand business are now:
- Threshold increase to $5,000 (excluding GST) for asset purchases from 17th March 2020 through to 17th March 2021
- From 17th March 2021 the threshold will decrease to $1,000
It is worth pointing out the threshold before that was $500.
For more information on New Zealand related instant asset write off see:
- Beehive: Urgent tax measures for economic recovery
- Deloitte: Tax reform measures included as part of business continuity package
Australia: Instant asset write off threshold increases to $150,000
From 12th March 2020 through to 30 June 2020 the instant asset write off threshold has had the following amendments:
- Threshold is now $150,000 (up from $30,000)
- Eligibility criteria has expanded to included businesses with aggregated turnover of less than $500 million (up from $50 million)
For more information on Australian related instant asset write off see:
With both countries offering relatively greater tax write off thresholds than what has previously been available now is the ideal time to invest in capital equipment eligible for instant write off!
It is also worth noting that there maybe other tax write off options such as accelerated depreciation that might work best for your unique financial situation.
The information in this blog does not constitute financial advice, and like always we’d recommend you seek the advice of a recognised financial advisor prior to making purchase decisions you wish to apply this tax write off incentive too.