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.

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

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.

Read more from the ATO website

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