Changes to the instant asset write-off
The threshold has increased to $150,000, and has been extended to 31 December 2020.
The instant asset write-off now also includes businesses with a turnover from $50 million to less than $500 million. These businesses can claim a deduction of up to $150,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 12 March 2020 until 31 December 2020.
Businesses with a turnover of up to $500 million can also claim a deduction for each asset purchased and first used or installed ready for use, up to the following thresholds:
- $150,000, from 12 March 2020 until 31 December 2020
- $30,000, from 7.30pm (AEDT) on 2 April 2019 until 12 March 2020
- $25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
- $20,000, before 29 January 2019.
Your business clients can't immediately claim a deduction for individual assets that cost $150,000 or more. They can continue to deduct these over time using the small business pool or the general depreciation rules, depending on their turnover.
Please check out here for more information.