COVID-19 and Instant Asset Write Off Updated
Last Updated 10 June 2020
As an update to a blog posted on 5 June 2020, the instant asset write-off program has been extended until 31 December 2020. That is, businesses will be able to claim accelerated depreciation up to $150,000 until 31 December 2020.
COVID-19 and Instant Asset Write Off
Last Updated 5 June 2020
The instant asset write-off threshold has been increased from $30,000 to $150,000 until 30 June 2020.
Eligibility
Eligibility to claim the increased threshold, instant asset write-off depends on; annual turnover of less than $500 million, purchase date of the asset, asset is used or installed ready for use between 12 March 2020 and 30 June 2020 and the cost of the asset being less than the threshold.
How to Apply
There is no application required. The instant asset write-off is applied via the lodgement of your tax return for the 2019 / 2020 financial year.
Instant Asset Write-Off
Last updated 30th March 2020
The Federal Government has increased the instant asset threshold from $30,000 to $150,000, allowing business to reduce their tax and free up working capital.
What is available
From 12th March 2020 until 30th June 2020 the instant asset write-off threshold amount for each asset has increased from $30,000 to $150,000.
Under the instant write-off, eligible businesses can immediately write off the cost of each asset where cost is less than the threshold and claim a tax deduction for the business portion of the purchase cost in the year the asset was first used or installed ready for use.
From 1st 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.
Eligibility Criteria
Eligibility has been expanded to cover businesses with a turnover of less that $500 million (up from $50 million).
Thresholds
Please see the ATO website for the instant asset write off thresholds.
How to apply
Eligible businesses may write off eligible assets when lodging their tax return with the ATO, including the costs of the assets they wish to deduct for the financial year.
It is advised businesses discuss this with their tax accountant before lodging tax return.
