On 12th March 2020 the government announced plans to increase the instant as- set write-off threshold to $150,000 (up from $30,000) and expand eligibility to businesses with an aggregated annual turnover of less than $500 million (up from $50 million).
This proposal applies from 12th March 2020 until 30th June 2020, for new or second-hand assets first used, or installed ready for use in this timeframe.
The proposed changes do not take effect until new laws are passed.
Under instant asset write-off eligible businesses can immediately write off the cost of an asset that cost less than the threshold and claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.
You are eligible to use instant asset write off if all of the following apply:
• your business has a turnover of less than $10 million
• you are eligible for and have chosen to use the simplified depreciation rules
• you purchased the asset from the relevant date
• the asset cost less than the threshold at the time the asset was first used or installed ready for use.
For further information visit www.ato.gov.au