Instant asset write-off expanded

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Instant asset write-off expanded

4th April 2019

The government’s instant asset write-off expansion was passed through the Senate yesterday afternoon and is expected to be voted on in the lower house later today.

What is  the Instant Asset Write-Off?

If you buy an asset for your business and it costs less than $20,000 (see table below for varying amounts), you can write off the business portion in your tax return for the relevant income year.

What’s changed since the 2019 Budget?

The Instant Asset Write-Off now has three tiers in 2019 tax year thanks to the 2019 Budget.

  • The first tier will be the $20,000 threshold for depreciable assets that are acquired before 29 January 2019;
  • The second being the $25,000 threshold for assets first used or installed between 29 January 2019 and 2 April 2019;
  • The third tier being the $30,000 threshold for assets first used and installed after the 2 April budget announcement and before 1 July 2020.

Before the Budget, the instant asset write-off only applied to businesses with less than $10M turnover. It now applies to businesses with less than $50M turnover.

If you’re unsure how this works for your business, please email or call David Howells on (02) 4455 5333

Related link
SmartCompany story “Instant Asset Write-off passes in post-budget blitz”

About the Author:

David Howells
David is passionate about helping clients improve their businesses and achieve their goals. He is an expert Auditor who also specializes in Business Advisory, Strategic Tax Planning, and compliance of Not-For-Profits & Self-Managed Super Funds.Contact David via email or call 02 4455 5333.