Need a shed? We’ve got you covered this tax time

30 April

Now is a great time to build a new shed with the Federal Government launching generous tax incentives to help small businesses.

The instant asset write-off threshold has been dramatically increased and there is a new policy which allows accelerated depreciation on assets that exceed the new threshold limit.

Steelcorp General Manager Joshua Wiggins, who is also an accountant, says the new measures make purchasing your next shed with Steelcorp particularly attractive.

“These new announcements are unprecedented,” he says.

“According to the data there are 3.5 million businesses that could benefit from this incentive and it’s important to understand how it works for you. 

“Let’s look at a new farm shed project amounting to $120,000 including footings and install. By simply bringing forward the investment, you could potentially reduce your tax bill by $33,000 while supporting local businesses and jobs. 

“We need to ensure businesses in our communities understand the benefits of this scheme and if anyone has a project in the pipeline you need to act quickly before the June 30 deadline.”

To help you calculate your potential tax saving, we’ve created an easy to use calculator. View our calculator here.

The new announcements include the following provisions:

  • Instant asset write-off increase – the instant asset write-off threshold has been increased from $30,000 to $150,000 for eligible assets purchased from 12 March 2020 to 30 June 2020. This means you can deduct the entire cost of the asset this financial year rather than depreciate the cost over a set number of years.
  • 15 month investment incentive – businesses will have access to accelerated depreciation deductions in the form of a 50% immediate deduction of the cost of eligible assets purchased from 12 March 2020 to 30 June 2021. The balance of the asset cost is then depreciated over a number of years according to the existing rules. This can be applied to assets that exceed the $150,000 threshold mentioned earlier.

The existing Fodder Storage Asset package incentive also remains for primary producers.

Our team is placing priority on sheds that are eligible for these announcements and are ready to get your next project underway!

For more information on the recent announcements visit here.

Steelcorp recommends speaking to your financial adviser who can advise further on how Government incentives can work for you.