Instant Asset Write-Off
Increase to the instant asset write-off
The Government is backing businesses to invest and help the economy withstand and recover from the economic impact of Coronavirus. The two business investment measures in this package are designed to assist Australian businesses and economic growth in the short-term and encourage a stronger economic recovery following the Coronavirus outbreak. The Morrison Government is increasing the instant asset write-off threshold from $30,000 to $150,000 and expanding access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.
In 2017-18 there were more than 360,000 businesses that benefited from the current instant asset write-off, claiming deductions to the value of over $4 billion. This measure will support over 3.5 million businesses (over 99 per cent of businesses) employing more than 9.7 million employees.
~Eligible ABN holders may be able to depreciate the full cost of a business vehicle purchase in the current tax year with the Federal Government increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020.. You should obtain your own professional financial advice before making a decision based on this information.