UP TO $150K INSTANT ASSET WRITE OFF

If you are a small business owner, under the instant asset write-off you can immediately write off new or second-hand assets purchased for your business that cost less than the relevant threshold amount.

New Changes from 12 March 2020
From 12 March 2020 until 30 June 2020 the instant asset write-off:

• 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).

You can claim a deduction for each asset first used or installed ready for use, less than the following thresholds:

• $150,000 – from 12 March 2020 until 30 June 2020
• $30,000 – from 7.30pm (AEDT) on 2 April 2019 until 11 March 2020
• $25,000 – from 29 January 2019 to 7.30pm (AEDT) on 2 April 2019
• $20,000 – before 29 January 2019.

From 1 July 2020, the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

You may purchase and claim a deduction for multiple assets provided each asset costs less than the relevant threshold.
Examples of assets include:

• a car or ute
• drills
• electric sanders
• electric saws
• grinders
• leaf blowers
• lawn mowers
• nail guns
• ladders
• tool boxes
• work lights
• high-pressure water cleaners
• concrete mixers
• shelving and storage
• computers, laptops and tablets.

For more information please visit the Australian Taxation Office website or seek professional advice to determine eligibility.