Australia – The Australian government announced on 12 March an instant asset write off increase from $30,000 to $150,000, valid until 30 June 2020.
The global outbreak of the coronavirus has a major impact on businesses world-wide, and in an attempt to lift the pressure off small and medium businesses nationwide, Australia is enabling eligible businesses to instantly deduct costs of newly purchased assets worth up to $150,000 rather than deducting claims over a number of years.
To qualify for the instant asset write off, your business must have a turnover of less than $500 million and assets need to be under $150k. Only the business portion of the asset can be claimed.
There are five main considerations to ensure a business qualifies for the grant:
- The business must have a detailed report of any fit-out costs that are being carried out.
- Costs of any new assets must be kept below $150,000.
- New assets must be purchased before 30 June 2020, when the write off expires.
- Accelerated depreciation of assets over $150,000 expire on 30 June 2021.
- Accelerated depreciation refers to assets over $150,000, which cannot be claimed as outright deduction, but can still be depreciated. Businesses with a turnover of less than $500 million can deduct an additional 50% of new asset costs in the year of purchase.
New purchases of $202,000 could normally be claimed back for $35,000 in the first year. But now, the same asset acquisitions can be written off at $150,000. The remaining $50,000 includes capital works like paint or plumbing, and will need to be claimed back at 2.5% per annum over a period of 40 years.
In medical construction, this translates to the acquisition of plant and machinery, computers/laptops, office equipment and motor vehicles.
The Australian government is in the process of rolling out a network of up to 100 fever clinics to aid in COVID-19 testing. This is one way in which pressure will be lifted off private clinics and hospitals by mitigating patients that do not require intense care and in doing so allowing a more controlled healthcare program.
Improvements made to local clinics and other healthcare facilities will greatly benefit from the support of this government grant to make necessary upgrades and amendments, and ensure the country is prepared for crises of this nature in the future.
Space for Health specialises in the design and delivery of top-quality healthcare environments and is experienced in large-scale projects and national rollouts. Powered by an expert team of in-house architects, interior designers, health planners and project managers, Space for Health has successfully completed over 200 projects in the medical construction industry in locations across Australia.