Instant Asset Write-Off Extended
This week the government announced that the Instant Asset Write-off has been extended for six months, taking the initiative to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.
The instant asset write-off can be used for:
- multiple assets as long as the cost of each individual asset is less than the relevant threshold
- new and second-hand assets.
Changes this year
From 12 March 2020 now through to 31 December 2020 the instant asset write-off details are below.
- threshold amount for each asset is $150,000 (up from $30,000)
- eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
Your eligibility for the write-off depends on:
- your aggregated turnover
- the date you purchased the asset
- when it was first used or installed ready for use
- the cost of the asset being less than the threshold ($150,000)
You can find more information on which assets can you claim as an immediate deduction here. Feel free to contact us so we can walk you through the different thresholds, exclusions, and limits.
Got a question?
Please don’t hesitate to get in touch. S & H Tax accountants serve small business in Melbourne. Call us for free consultation now on 1300 724 829