Expanded instant asset write-off and your small business
In March 2020, the federal government introduced a $17.6 billion economic stimulus package to help Australian businesses navigate these unprecedented times. It includes an expansion of the instant asset write-off scheme with increased thresholds for eligible assets and businesses.
According to the ATO, the instant asset write-off scheme allows eligible businesses to, “immediately write off the cost of each asset that costs less than the threshold” and “claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.” (Some exclusions and limits apply)
From 12 March 2020 until 30 June 2020, the threshold for the cost of a new or second-hand asset has been raised from less than $30,000 to less than $150,000. The annual turnover threshold for eligible businesses was raised from less than $50 million to less than $500 million. This now covers more than 99% of Australian businesses.
Before you make any asset purchase decisions, it’s important to talk to your accountant or financial adviser. Furthermore, you can read how ORIX Australia uncovers the instant asset write-off. Read more.