Archive <$150K Tax Write-off Ends 31 Dec 2020.
- 15
- Sep
- 2020
The instant asset write-off threshold has been increased to $150,000.
The instant asset write-off threshold has been increased to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million).
This applies from 12 March 2020 until 31 December 2020, for new or second‑hand assets first used or installed ready for use in this time-frame.
The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. There are vehicle depreciation restrictions.
The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets.
Eligibility
Eligibility to use instant asset write-off depends on:
- your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
- the date you purchased the asset and it was first used or installed ready for use
- the cost of each asset being less than the threshold.
The criteria have changed over time so make sure you check whether your business is eligible.
From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000. Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.
Timing
This applies from 12 March 2020 until 31 December 2020, for new or second‑hand assets first used or installed ready for use in this time-frame.
How to apply
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility and ensure you apply the correct threshold amount as stated by the Australian Taxation Office (ATO).
Learn more about the increasing the Instant Asset Write-Off.
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*Sourced from www.business.gov.au
*Information is general in nature only. It has been prepared without taking into account your particular circumstances and needs. Before acting on any information on this website you should seek advice on whether it is appropriate for your needs.