Here’s how to make the most of the $30k instant asset write-off

Are you considering purchasing assets for your business? If so, we’ve got good news for you! The Australian Taxation Office (ATO) has increased the instant asset write-off threshold to $30,000, and extended it to 30 June 2020. Here’s how you can make the most of the $30k instant asset write-off:

Are you eligible?

If your business has a turnover of less than $50 million, you are now eligible for the ATO’s $30k instant asset write-off.

What kinds of purchases apply?

If you purchase an asset (new or second hand) costing less than $30,000 and it is used or installed ready for use from 7:30pm AEDT on 2 April 2019, you can claim a deduction for the business portion.

Different thresholds apply for assets purchased before that date:

  • from 29 January 2019 until before 7.30pm AEDT on 2 April 2019, the threshold is $25,000
  • before 29 January 2019, the threshold is $20,000.

You can purchase and claim a deduction for multiple assets – provided each asset is under the relevant threshold.

What about assets costing more than $30k?

Assets that cost $30,000 each or more can’t be immediately deducted, but they will continue to be deducted over time using the general small business pool. You can write off the balance of this pool if the balance is less than $30,000 at the end of an income year, and before applying any other depreciation deduction.

Consult your accountant to ensure you to meet your tax responsibilities and make the most of the tax benefits available to your business.

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