Instant Asset Write-off Now $150000

Instant Asset Write-off Now $150000

Instant Asset Write-off Now $150000

Instant asset write-off for eligible businesses increased from $30000 to $150000

With the upcoming ban on quad bikes and the increase in the instant asset write-off scheme, now is the time to act to secure new equipment for your eligible business.

Under instant asset write-off eligible businesses can:

  • immediately write off the cost of an asset that cost less than the threshold
  • claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.

Instant asset write-off can be used for both new and second-hand assets but there are a small number of assets that are excluded.

The instant asset write-off threshold has changed over time since its introduction, so you need to ensure you apply to correct threshold amount.

Proposed changes

On 12 March 2020, the government announced plans to:

  • increase the instant asset write-off threshold to $150,000 (up from $30,000)
  • expand eligibility to businesses with an aggregated annual turnover of less than $500 million (up from $50 million).

This proposal 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 proposed changes do not take effect until new laws are passed.

To learn more, including examples and eligibility criteria, and stay updated on any changes please refer to the following page:

https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/

Note: All information is provided as a guide only. For information on how this change may apply to your business please contact a qualified tax agent or the ATO