Increasing The Instant Asset Write-Off

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Lifting the threshold to $150,000 (from $30,000) and expanding access to businesses with aggregated turnover of less than $500 million (up from $50 million).

Lifting the threshold to $150,000 (from $30,000) and expanding access to businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. The threshold applies on per asset basis, so eligible businesses can immediately write-off multiple assets.

The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. In 2017-18 there were more than 360,000 businesses that benefited from the current IAWO, claiming deductions to the value of over $4 billion.

The IAWO threshold

The higher IAWO threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets. The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.

Eligibility:

The annual turnover threshold for businesses to deduct eligible assets has been increased to $500 million. Expanding the threshold will allow an extra 5,300 businesses to access the instant asset write-off scheme for the first time.

Timing

The threshold increase will apply from 12 March 2020 till 30 June 2020. Any new or second hand assets up to $150,000 each, used or installed ready to use during this period will be eligible for deduction.

FAQs

Any business with aggregated annual turnover of less than $500 million.

Businesses can immediately deduct purchases of eligible new or second hand assets each costing less than $150,000 either used or installed ready to use between March 12 and 30th of June 2020.

The threshold increase from $30,000 to $150,000 will be in place from 12th of March to the 30th of June 2020.

Increasing The Instant Asset Write-Off - Frequently Asked Questions(FAQ)

What businesses can claim the instant asset write-off?

Any business with aggregated annual turnover of less than $500 million.

What assets can businesses write-off under the new threshold?

Businesses can immediately deduct purchases of eligible new or second hand assets each costing less than $150,000 either used or installed ready to use between March 12 and 30th of June 2020.

During what period can businesses deduct assets up to the new threshold?

The threshold increase from $30,000 to $150,000 will be in place from 12th of March to the 30th of June 2020.

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