Generators for Small Businesses and the $20,000 Instant Asset Write-Off

Generators for Small Businesses and the $20,000 Instant Asset Write-Off

Who doesn’t like free money? That’s what the bolstered instant asset write-off scheme is going to mean for small businesses by offering tax incentives on qualifying purchases over the coming financial year (2023-24).

There had been fears the scheme might only cover purchases of just $1,000 so if you’re planning to make a significant purchase, then it’s great news.

Generators for small businesses would fall under the qualifying categories. So what can small businesses claim, who is eligible and how does it all work? Read on for the lowdown.

Who Is The New Scheme Open to?

Despite the good news, it’s worth remembering that the new threshold falls far below the tax incentives offered by the Temporary Full Expensing measure that preceded the forthcoming scheme. This permitted businesses to claim a tax deduction for any qualifying asset, no matter what the value.

The Temporary Full Expensing measure introduced 3 years ago during the pandemic, was available to all Australian businesses with up to $5 billion in annual turnover.

The new and updated instant asset write-off scheme is to be open to qualifying businesses with an annual turnover below $10 million. Eligibility will depend on:

  • Your aggregated turnover or total ordinary income of your business
  • The date you purchased the asset
  • When the asset first gets used or installed ready for use
  • The price of the asset being lower than the threshold

Almost 98 per cent of all businesses in Australia come under the category of “small” and employ less than 20 people. There are around 2.5 million of them in total. Many of these rely on a portable means of power supply making the purchase of Maxwatt’s new petrol generators very attractive for the 2023/24 financial year.

What Will the Scheme Allow Your Business to Do?

In a similar way to its predecessors, the new instant asset write-off scheme will let qualifying small businesses claim a tax deduction for the entire value of purchases such as petrol generators after their initial use. That’s in contrast to claiming amounts related to depreciation over several years.

The scheme is to cover all qualifying purchases up to a value of $20,000. That’s the same level that was in place in 2015.

The hope is that the new measure will make cash-flow improvements for small businesses. At the same time, the expectation is that it will reduce compliance and accounting costs and complexities related to figuring out depreciation over several years.

The scheme is of particular value to those who run larger food trucks, coffee vans, market stalls and events or to anyone else who needs generators for small businesses.

The 2023-24 tax year would be the ideal time to invest in state-of-the-art quiet generators like the all-new super silent MX13000IS from Maxwatt. This exciting new product will be available from September and offers the best in:

  • A portable power source
  • Fuel efficiency
  • Low-noise emissions

Also suitable for emergency home backup power, this generator has a rated output of 12000 watts with a maximum output of 13000 watts.

Additionally, the MX13000IS complements off-grid solar power systems. It has a pre-installed 2-wire automatic start, run and stop control system.

We expect high demand for this product. Get in touch today with one of the Maxwatt team if you’re interested in purchasing one and taking advantage of all the benefits of the government’s instant asset write-off scheme.

However, if there’s a hole burning in your pocket and you can’t wait until September 2023, Maxwatt’s 13.5kVA petrol generator model might be the perfect fit for your needs. This petrol generator is ideal for tradies looking for a reliable power source for their business.

Easy to manoeuvre and move from one place to another, Maxwatt’s range of generators is the perfect match for any small business that needs a portable, quiet power supply.

When Does the Scheme Begin and End?

This new version of the instant asset write-off scheme is going to be live from July 1, 2023, through June 30, 2024.

In effect, that means businesses will have to ensure their assets are up and running within that timeframe. If you’re starting out on a new business venture or need to replace existing equipment such as a petrol generator, this would be the moment to consider making a purchase.

Which Type of Assets Qualify for the Scheme?

As with previous instant asset write-off schemes, the new one applies to all depreciable assets. That’s provided they fall below the $20,000 threshold.

The $20,000 threshold will work on a per-asset basis so any small businesses can write off several assets at a time and straight away if they wish.

It’ll still be possible to place assets valued at $20,000 or more into the small business simplified depreciation pool. That equates to depreciation at 15 per cent in the first income year, and 30 per cent for every year thereafter.

What Happens to the Temporary Full Expensing Measure?

Temporary full expensing introduced in October 2020 meant assets of any value were tax-deductible. This scheme is due to end at the end of June 2023. There had been concerns there would be nothing meaningful to replace it.

The new scheme goes some way to allay the fears but it’s worth remembering that it’s still due to end in the middle of 2024. If you’re planning to upgrade your petrol generator for a quieter version like the MX13000IS from Maxwatt, then now could be just the right time to do it.

Reliable Petrol Generators For Small Businesses That You Can Trust

Maxwatt has invested heavily in developing quality, built-to-last generators for small businesses. For many business owners who start work early in the morning to run a coffee or food van, quiet generators are a must.

Get the name of your small business down today for the all-new MaxWatt MX13000IS generator due out in September. The fact it’s tax-deductible makes this top-of-the-range petrol generator a must for the 2023/4 tax year.

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