Instant Asset Write-Off Extended and Increased to $30k!
Date Posted:17 June 2019
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.
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.
For further information please consult your accountant, tax advisor or the Australian Taxation Office (ATO).