June 17, 2020

$150k instant asset write-off extended for 6 months

Note: On 9 June 2020, the government announced it will extend the $150,000 instant asset write-off until 31 December 2020. This proposed change is subject to the parliamentary process and is not yet law.

Under the current law, eligibility for the instant asset write-off has been expanded to include businesses with an aggregated turnover of less than $500 million (up from $50 million) from 12 March until 30 June 2020.

If you’ve purchased or are planning to purchase assets for your business, you may be eligible to claim an immediate deduction for assets less than $150,000.

The following tips can help you get your instant asset write-off claim right:

If you do not use the simplified depreciation rules, you may be eligible to deduct an amount using accelerated depreciation if the asset is an eligible asset.

  • check if you’re an eligible business
  • both new and second-hand assets can be claimed, provided each asset costs less than $150,000
  • to claim a deduction in the 2019/20 year assets must be first used or installed ready for use between 12 March and 30 June 2020
  • a car limit applies to passenger vehicles. The limit is $57,581 for the 2019–20 income tax year
  • if your asset is for business and private use, you can only claim the business portion
  • different eligibility criteria and thresholds apply to assets first used, or installed ready for use, prior to 12 March 2020.

Please contact our office on 9387 5637 if you require information in relation to the above and we will be happy to assist.

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