World News – AU – Instant asset write-off program extended to large corporations

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A coronavirus stimulus measure for small and medium-sized businesses has now been extended to the upper end of the city, the government says this is a step to boost investment and create jobs.

Treasurer Josh Frydenberg said the government would allow companies with sales of more than $ 5 billion to deduct the cost of new capital investments immediately.

Immediate asset depreciation – a centerpiece of the October budget – was originally targeted at 3. 5 million small businesses.

In its original form, companies with annual sales of up to $ 500 million could acquire new assets valued at up to $ 150 million. Write off $ 000.

Companies making less than $ 5 billion in Australia can now apply no matter how much money they make worldwide.

This means that while companies like Coca-Cola Amatil are eligible, mining giants like BHP are not.

The hope is that companies will revise their investment plans and accelerate projects, which in turn will boost employment.

Mr Frydenberg said the government will enact laws to expand access « to encourage more investment, create more jobs and further support our economic recovery from COVID-19 ». .

« The full expense allows companies with total revenue less than $ 5 billion to temporarily deduct the full cost of eligible depreciable assets from any value in the year they are first used or installed, » said he.

Hundreds of thousands of companies embarked on a similar program that was launched during the global financial crisis under then Labor Prime Minister Kevin Rudd.

The system is expected to become popular again this time around, but its success won’t be known until after companies file their tax returns.

Our preference for storing cash during a crisis persists, even as we move into a more digital world, writes Nassim Khadem.

The Australian Income Tax Office (ATO) has already warned companies not to pretend to be losing money in order to take advantage of these and other incentives, including the popular JobKeeper wage subsidy.

The government first announced that it would expand its immediate asset write-off program in March, in the early stages of the coronavirus pandemic.

The system that was already in place for some companies changed from allowing those earning $ 50 million a year to make purchases up to 30. Write off $ 000, allowing those earning $ 500 million a year to make purchases up to $ 150. $ 000 to be deducted.

Then Mr Frydenberg said in the October budget that the regulation, which came into effect on 1. Should end July, it would last until the end of the year.

He said about 3 at the time. 5 million companies could benefit from the program.

Today’s announcement, following lobbying by the Business Council of Australia and the Corporate Tax Association, opens about 50 more businesses with more than 150. 000 Australians.

In order to pass the new test, companies in the 2018-19 or 2019-20 income year must have a statutory and ordinary total income of less than 5 billion. Have USD (with no valuation non-exempt income).

And they need to invest more than $ 100 million in property, plant and equipment from 2016-17 through 2018-19.

« Companies with total revenue of more than $ 5 billion from income from a parent company or an overseas associate may now qualify provided they meet the additional investment requirements, » said Frydenberg.

The government will also allow businesses to opt out of the temporary full expense allowance and asset-to-asset business investment incentive.

« This change gives companies more flexibility with regard to these measures and removes any potential incentive for them to take advantage of these incentives, » said Frydenberg.

This service may contain material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service that is copyrighted and cannot be reproduced.

AEST = Australian Eastern Standard Time, 10 hours before GMT (Greenwich Mean Time)

Asset, Depreciation, Finance

World News – AU – Instant asset depreciation schedule extended to large corporations
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– <a href="/?s=Instant Asset Depreciation Scheme Extended to Large Corporations, Announces Josh Frydenberg Josh Frydenberg Announces

Ref: https://www.abc.net.au

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