Home News Increasing the instant write-off threshold for business assets

Increasing the instant write-off threshold for business assets

The depreciating asset instant asset write-off threshold has increased from $30,000 to $150,000 until 30 June 2020.

The measure applies to both new and second-hand assets first used or installed ready for use in the period beginning on 12 March 2020 (i.e., the date on which this measure was announced) and ending on 30 June 2020.

Small Business Entities (‘SBEs’) are businesses with aggregated turnover of less than $10 million.

SBEs will be able to claim an immediate deduction for depreciating assets that cost less than $150,000, and first used or installed ready for use on or after 12 March 2020, but before 1 July 2020.

Additionally, SBEs will also be able to claim an immediate deduction for the following:

  1. An amount included in the second element of the cost of (i.e., an improvement to) a depreciating asset that was first used or installed ready for use in a previous income year. The amount of the second element cost must be less than $150,000 and the cost must be incurred on or after 12 March 2020, but before 1 July 2020.
  2. If the balance of an entity’s general small business pool (excluding current year depreciation) is less than $150,000 at the end of the 2020 income year, a deduction can be claimed for this balance.

Currently, the instant asset write-off threshold is due to revert to $1,000 for small businesses from 1 July 2020.

 

Need help sourcing a loan for a new piece of equipment?

Let our Loans and Lending Manager Paul Logan do the hard work for you, phone 4662 3722.

 

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