The Instant Asset Write-Off Scheme allows businesses with a turnover of $50M or less to claim an immediate and full deduction for any business related assets purchased up to a value of $30,000.
The new scheme sees the business turnover eligibility increased $50 million. The previous threshold was $10 million.
There is no limit to the number of assets you can claim, however, some assets such as capital works, assets leased to another party and horticultural plants do not qualify. All individual assets which cost over $30,000 can continue to be deducted over time using the small business pool or general depreciation rule, depending on the business turnover.
The new scheme’s cut-off date for claims is June 30, 2020. Assets must be purchased and installed or first used before this date.
*The above information is general in nature and does not constitute financial advice. Individual circumstances and eligibility vary and businesses should seek independent financial or tax advice regarding their own business circumstances. For more information visit the Australian Taxation Office website.