• Instant Asset Write-off

Instant Asset Write-off

There's no better time to purchase a used machine or gear for your existing machines! The government's Instant Asset Write-off threshold has increased from $30,000 to $150,000 until the end of June, with plans in place to now extend this until 31 December 2020 (still to be passed into law at 15/06/2020)

Under instant asset write-off eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.

Instant asset write-off can be used for:

  • Multiple assets as long as the cost of each individual asset is less than the relevant threshold
    New and second-hand assets.
    It cannot be used for assets that are excluded from the simplified depreciation rules.

The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business's eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.

Changes from 12 March 2020
From 12 March 2020 until 30 June 2020 the instant asset write-off:

  • Threshold amount for each asset is $150,000 (up from $30,000)
    Eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).