$5,000 Low Asset Write-Off For Kiwi Businesses

As part of the response to the current economic climate the New Zealand Government threshold for low value asset write-off has increased from $500 to $5,000 (as of March 17th, 2020). This means assets purchased after this date are able to be included if they meet criteria. As a result Kiwi businesses who are looking to upgrade some key items to their business are able to take part in this scheme. This opportunity is until March 17th, 2021 (when the threshold will revert down to $1,000).

This comes at a time when many businesses may be investing in technology assets to ensure that employees can continue to work from home if needed. The existing tax rule allows an immediate deduction for assets up to a value of $500; noting that there are some caveats to this rule which we expect will also apply to the new $5,000 threshold:

• If multiple assets with the same depreciation rate are acquired from the same supplier at the same time, the $5,000 threshold applies across all the assets acquired (it is not a per asset threshold);
• If the asset being acquired actually forms part of another item of depreciable property an immediate deduction is not available.

Now is the best time to take advantage of this opportunity and start saving money in your business straight away.

At Fuelchief we stock a variety of bulk fuel storage tanks that are under the threshold such as our very popular Ute tanks and AdBlue tanks. If you are looking for an even longer-term investment and have the ability to opt for finance, or have the funds now, why not invest in an on-site fuelling system. These turn-key solutions are ideal in saving you money, but also providing a return on your investment in just a few months after they are functional on your premises.

Check out our case studies to see what other people are saying. The DC Series have been saving our customers time, money and labour for over two years now.

To see how much you could save, just like our customers, check out our tank savings calculator.

Now is the best time to take advantage of this opportunity and start saving money in your business straight away.

FOR FURTHER INFORMATION VISIT:

https://www.ird.govt.nz/covid-19/business-and-organisations/specific-income-tax-issues/depreciation-and-low-value-assets

https://www.propertytaxreturns.co.nz/blog/increased-low-value-asset-deductions/

Please note: https://fuelchieftanks.com/disclaimer/

Blog article by Praneel Lal