If you are a business wishing to improve or expand and you are considering buying new or second hand assets, your business may be eligible to an instant asset write off.
The ATO has increased and extended the instant asset write-off to apply to businesses with a turnover from $10 million to less than $50 million. The instant asset write-off may also apply to small businesses with a turnover of up to $10 million.
Businesses within the higher turnover bracket are eligible, for assets purchased and first used or installed for use up to $30,000 each from 7:30pm on 2 April 2019 to 30 June 2020. If underneath the $30,000 threshold, business are able to purchase and claim a deduction for multiple assets. For assets over $30,000, the general depreciation rules apply.
Small businesses may also be eligible for instant asset write off of $30,000 for assets purchased from 7:30pm on the 2 April to 30 June 2020.
This information was sourced from the Australian Taxation Office (2019). For more information on the instant asset write off conditions, please click here.