The Instant Asset Write-Off has been increased to $30,000, and has been extended to the 30 June 2020.
The end of financial year is fast approaching, don’t miss out on your chance to grow your business! Unlock the benefits of the $30,000 Instant Asset Write-Off now before the EOFY.
You can use finance to fund the purchase of a new asset and Assured can assist you with a variety of business loans for a range of assets such as motor vehicles or equipment. We work with a range of business partners and lenders to help you secure a great loan for your business needs.
Using the simplified depreciation rules, assets costing less than the relevant instant asset write-off threshold are written off in the year they are first used, or installed ready-for-use. This threshold applies to each asset irrespective of whether the asset is purchased new or second-hand.
The threshold has changed over the last few years and during the current year as shown in the table below.
Instant asset write-off thresholds
|7:30pm (AEDT) 02/04/2019 to 30/06/2020
|29/01/2019 to before 7.30pm (AEDT) 02/04/2019
|7.30pm (AEST) 12/05/2015 to 28/01/2019
|01/01/2014 to prior to 7.30pm (AEST) 12/05/2015
|01/07/2012 to 31/12/2013
|01/07/2011 to 30/06/2012
The instant asset write-off now also includes businesses with a turnover from $10 million to less than $50 million. These businesses can claim a deduction of up to $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.
Businesses with a turnover of up to $10 million can also claim a deduction for each asset purchased and first used or installed ready for use, up to the following thresholds:
- $30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020
- $25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
- $20,000, before 29 January 2019.
Source: ATO 13/5/2019 https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/In-detail/Depreciating-assets/Simplified-depreciation—rules-and-calculations/?page=4
ATO 13/5/2019 https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Instant-asset-write-off-increased-and-extended/