Instant asset write-off increased and extended

05Jun '19

Instant asset write-off increased and extended

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:

  1. from 29 January 2019 to 2 April 2019, the threshold is $25,000;
  2. 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.

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