Small business $30,000 instant asset write-off

Good news if you are considering the purchase assets for your business.

The government has increased the instant asset write off threshold to $30,000 and extended to 30 June 2020.

If you purchase new or second hand asset for your business that costs less than $30,000 and it is used or ready for use from by 2 April 2019, you can claim a tax deduction for the business portion.

But you need to bear in mind that different thresholds apply for assets purchased before that date:

from 29 January 2019 until 2 April 2019, the threshold is $25,000
before 29 January 2019, the threshold is $20,000

Businesses may also purchase and claim a deduction for multiple assets if each asset is under the relevant threshold.

Assets that cost $30,000 each or more can’t be immediately deducted. But you can still continue to deduct them over time in this case.

From 2 April 2019, the instant asset write-off has also been expanded to include businesses with a turnover from $10 million to less than $50 million.

If you would like to know more about the changes to the instant asset write off for your business please get in touch. You can also visit the ATO website for more information.