Changes to the instant asset write-off

The threshold has temporary increased to full expensing, till 30th June 2022.

The instant asset write-off now also includes businesses with a turnover from $5 Billion to less than $10 million. These businesses can claim a deduction of full expensing for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 6th October 2020 until 30th June 2022.

Criteria as below:

• The business portion of the cost of new eligible depreciating assets for businesses with an aggregated turnover under $5 billion or for corporate tax entities that satisfy the alternative test
• The business portion of the cost of eligible second-hand assets for businesses with an aggregated turnover under $50 million
• The balance of a small business pool at the end of each income year in this period for businesses with an aggregated turnover under $10 million

Your business clients now can immediately claim a deduction for individual assets without waiting to deduct the rest overtime using the small business pool or the general depreciation rules.

Please check out here for more information.