UPDATED - $150k Instant Asset Write-Off

Date Posted:2 June 2020 

UPDATED - $150k Instant Asset Write-Off main image

Are you a business owner or ABN holder?

One of the biggest announcements of the Federal Governments lately has been the increase for the instant asset write-off scheme, increasing from $30k to a massive $150k!
 

What is the $150,000 instant asset write-off?

Under instant asset write-off eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.

Instant asset write-off can be used for:

  • multiple assets as long as the cost of each individual asset is less than the relevant threshold
  • new and second-hand assets.

It cannot be used for assets that are excluded from the simplified depreciation rules.

The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business's eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.

Who is eligible?

Eligibility to use instant asset write-off on an asset depends on:

  • your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
  • the date you purchased the asset
  • when it was first used or installed ready for use
  • the cost of the asset being less than the threshold.

If you run a small business and choose to use the simplified depreciation rules, you must use instant asset write-off on all eligible assets.

Businesses with an aggregated turnover of $500 million or more are not eligible to use instant asset write-off.

From 1 July 2020 the instant asset write-off will only be available for small businesses with an aggregated turnover of less than $10 million and the threshold will be $1,000.

 

More information

For further information please consult your accountant, tax advisor or the Australian Taxation Office (ATO).

 


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