Let us hope this new financial year is not as tumultuous as the last few months.
Extension of the instant asset write off
Good news is that the instant asset write off of $150,000 has been extended for another 6 months to 31 December 2020. Businesses with an aggregated turnover of less than $500 million can qualify.
Note that for cars, the write off is limited to the depreciation car limit. However from 1 July 2020 this has increased to $59,136 (previously it was $57,581).
Second lot of cash flow boost payments
If you received cash flow boost payments in the last financial year, you will receive the same again this financial year between July and October 2020. The amounts are tax free and not subject to GST.
The payments are automatically delivered by the Australian Taxation Office (ATO) as a credit in the BAS or IAS when it is lodged.
They will be delivered in either two or four instalments, depending on whether you lodge monthly or quarterly. Quarterly lodgers will receive 50% of the second Boost in the June 2020 quarter and 50% of the second Boost in the September 2020 quarter. Monthly lodgers will receive 25% of the second Boost in each of the following months in 2020: June, July, August and September.