Instant asset write-off for eligible businesses Changes from 12 March 2020

 

Instant asset write-off for eligible businesses Changes from 12 March 2020

 

From 12 March 2020 until 30 June 2020 the instant asset write-off:

 

  • threshold is $150,000 (up from $30,000)
  • eligibility range covers businesses with an aggregated turnover of less than $500 million (up from $50 million).

Instant asset write-off thresholds

 

Date range for when asset first used or installed ready for use Threshold Eligible businesses
12 March 2020 to 30 June 2020 $150,000 Less than $500 million turnover
7.30pm (AEDT) on 2 April 2019 to 11 March 2020 $30,000 Less than $50 million turnover
29 January 2019 to 7.30pm (AEDT) on 2 April 2019 $25,000 Less than $10 million turnover
7.30pm (AEST) on 12 May 2015 to 28 January 2019 $20,000 Less than $10 million turnover
1 January 2014 to prior to 7.30pm (AEST) 12 May 2015 $1,000 Less than $10 million turnover
1 January 2012 to 31 December 2013 $6,500 Less than $10 million turnover
1 July 2011 to 30 June 2012 $1,000 Less than $10 million turnover

 

From 1 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.

Exclusions and limits

 

There are a small number of assets that are excluded.

 

In addition, if you purchase a car for your business, the instant asset write-off is limited to the business portion of the car limit of $57,581 for the 2019–20 income tax year.

 

Contact Expert Tax on 0449 952 855 or 1300 869 829 for assistance on tax related matters.