On the 21st of May 2019, the Australian Taxation Office (ATO) announced an extension to the instant asset write-off threshold.
The threshold has been increased to $30,000, and has also been extended to 30 June 2020. The instant asset write-off was also expanded and now includes those businesses with an annual turnover from $10 million to less than $50 million.
This is great news if you are considering purchasing assets for your small business.
If you have purchased an asset for less than $30,000 since the 2nd of April 2019, you are able to claim a deduction for the business portion of your purchase. You may claim deductions for multiple assets, providing that each asset is under the relevant threshold. For those assets that cost more than the $30,000, you can continue to deduct these over time using the small business pool.
Different thresholds apply for assets purchased before that date:
- The threshold is $25,000 for purchases from 29 January 2019 until before 7.30pm AEDT on 2 April 2019.
- The threshold is $20,000 for asset purchases made before 29 January 2019.
If you have further queries on how these changes may affect you, please contact our friendly and knowledgeable team. We would love to hear from you.
TBC Taxation and Business Consultants also offer free consultations to new clients, T&Cs apply, get in touch today to find out how we can help you.