Australian installers considering a solar project of up to 100kW can now take advantage of the government’s higher instant asset write-off threshold (IAWO). The instant asset write-off threshold has been increased from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million. This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe.
The IAWO threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible business can immediately write-off multiple assets. The IAWO is due to revert to $1,000 for small businesses with a turnover less than $10 million from 1 July 2020.
The incentive means that an entire solar project investment can be written off in this financial year, which means the time for your system to pay for themselves can be reduced from 5 years down to 3.
If you have any questions or enquiries don’t hesitate the City to Surf Solar team today.