$30k Instant Asset Write Off
Updated May 2019:
Did you know the instant asset write off threshold has been increased from $20,000 to $30,000?
Following the 2019/2020 Federal Budget, the government announced an additional increase for assets “first used or installed, ready to use” between April 3, 2019, and June 30, 2020. This means small businesses can now write off depreciable assets that cost the business less than $30,000.
Small business owners once again have access to immediate deductions on their asset purchases, after the extension to the $20,000 threshold was finally passed by parliament.
The measure has been in place for several years, but rather than being a permanent fixture of the tax landscape, has been extended a year at a time in the federal budget.
As previously outlined, this year proved problematic as the extension – along with a raft of other legislation, including corporate tax cuts – failed to pass through parliament before the new financial year began.
That meant that the $20,000 write-off automatically dropped back to its original $1,000 level from 1 July, potentially catching businesses off guard.
However, the extension to 30 June 2019 was formally granted on Wednesday (12 September), meaning it is once again available for businesses with annual turnover of up to $10 million.
It enables eligible businesses to receive a full deduction for each asset purchased, below $20,000 in value, in the current financial year, rather than having to depreciate it over multiple years.
For further information contact us at SiDCOR on 1300 743 267.
*Article written by Adam Zuchetti for mybusiness.com.au. For full article visit: https://www.mybusiness.com.au/finance/4931-20k-asset-write-off-now-back-in-play