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 31 December 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 31 December 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 January 2021.
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 31 December 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.
Links to Government Resources
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.