Are you considering purchasing assets for your business?
The instant asset write-off threshold has been increased to $30,000 and extended until 30 June 2020.
If you purchase an asset (new or second hand) costing less than $30,000 and it is used or installed ready for use by 2 April 2019, you can claim a deduction for the business portion.
Just be aware that different thresholds apply for assets purchased before that date:
- from 29 January 2019 to 2 April 2019, the threshold is $25,000;
- prior to 29 January 2019, the threshold is $20,000.
You may purchase and claim a deduction for multiple assets provided each asset is under the relevant threshold.
Assets that cost $30,000 each or more can’t be immediately deducted. You can continue to deduct them over time using the small business pool.
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.
We at Best Business Practice can help you with your tax.