Instant Asset Write Off Scheme
If you have been considering a new shed for your business, now is the time to invest. In the updated instant asset write-off for eligible businesses scheme, the threshold for each asset has been increased to $150,000 (up from $30,000). Eligibility has also been widened. Businesses with a turnover of less than $500 million will now be eligible (up from $50 million).
The changes came into effect on the 12th March, 2020 and will be in place until 30th June, 2020.
Who Is Eligible?
Eligibility criteria has changed, so you will need to check if your business is eligible and apply the correct threshold. The three main factors are:
- Your aggregated turnover
- When the asset was purchased and first used or when it was installed and ready to be used
- The cost of the asset (must be less than the threshold)
The instant asset write-off is available for both new and second-hand assets.
What Is The Threshold?
From the 12th March, 2020 until 30th June, 2020 eligible businesses will be able to immediately write off the cost of each asset that costs less than the threshold. For businesses with a turnover of less than $500 million, the threshold is $150,000. Businesses with a turnover of more than $500 million are not eligible.
Businesses will be able to instantly write off the asset and claim a tax deduction for a portion of the purchase cost.
These changes to asset write-offs will only apply until 1st July 2020 when eligibility will revert back to those small businesses with a turnover of less than $10 million and the threshold will be $1000.