Are you eligible for an instant asset write-off?
In more news about the COVID-19 pandemic and the Australian government’s response to it during tax season, the threshold and eligibility for instant asset write-off has been lowered temporarily.
An instant asset write-off allows eligible businesses to write off the cost of each asset that cost less than the threshold and claim tax deductions for the business portion of purchase cost in the year an asset is first used or installed for use.
Due to the pandemic, the Prime Minister of Australia, Scott Morrison, announced in early March a suite of measures to stimulate the economy in wake of the pandemic. One of these was an injection of AUD 700 million by increasing the instant asset write-off threshold from AUD 30, 000 to AUD 150, 000. The access to this measure includes businesses with aggregated turnover of less than AUD 500 million from the original AUD 50 million.
This offer runs until the 30th of June 2020, after which the instant asset write-off reverts back to the original threshold and eligibility that was legislated.