Instant Asset Write-Off Extended and Increased to $30k!

Are you a small business owner?

The threshold has increased to $30,000, and has been extended to 30 June 2020.

What is it?

The instant asset write-off now also includes businesses with a turnover from $10 million to less than $50 million. These businesses can claim a deduction of up to $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.

Businesses with a turnover of up to $10 million can also claim a deduction for each asset purchased and first used or installed ready for use, up to the following thresholds:

$30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020
$25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
$20,000, before 29 January 2019.
Your business clients can't immediately claim a deduction for individual assets that cost $30,000 or more. They can continue to deduct these over time using the small business pool or the general depreciation rules, depending on their turnover.

(Source: ato.gov.au)

What’s covered?

Any asset that’s involved in running a business is covered under the scheme.

For tradies, workshops, garages, contractors, or anyone that requires tools for work – this means you can claim immediate deductions on any assets related to your business – Tool Kits, Generators, Power Tools, Safety Equipment, and so on!  In fact, most products available within the Revolution Industrial Website are eligible for the scheme, up to the value of $30,000!  There is no limit on the number of items, only the pooled value!

If the total value of the pool is below $30,000 it can be immediately deducted, assets over the value of $30,000 are not covered but can be fully written of over a longer period.

More information

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