Great news for small-to-medium sized businesses, the government has increased the instant asset write-off threshold to $30,000, effective for any new or second hand assets purchased as of 7:30 pm (AEDT) the 2nd April 2019.
Great news for small-to-medium sized businesses, the government has increased the instant asset write-off threshold to $30,000, effective for any new or second hand assets purchased as of 7:30 pm (AEDT) the 2nd April 2019.
The Even better news, the government not only extended the instant asset write off threshold to $30,000 but has also extended the temporary time period that it applies to 30 June 2020.
Businesses with a turnover from $10 million to less than $50 million are now eligible for the instant asset write-off.
“It’s a big boost for business that will enable them to invest for the future, perhaps bringing forward decisions that would have otherwise been delayed. It’s a no brainer really, every eligible business that is looking to invest and grow should consider the new measure’.” Craig Hailston
Remember ‘Cashflow is king’, the investment in an eligible asset will bring forward the tax deduction that will otherwise be claimable over time, thereby bringing forward the tax saving amount!
The Detail – what is instant asset write off
The instant asset write off enables small-to-medium size businesses to immediately deduct assets [write them off] instead of claiming them over their useful life. The entire cost of the asset (net of GST) must be less than the instant asset write-off threshold.
The measure has been in effect since 1 July 2011, however the government has increased the threshold over time. The larger thresholds: $20,000 on 12 May 2015, $25,000 on 29 January, 2019 and $30,000 on 2 April 2019.
If you're thinking about buying an asset, feel free to give us a call to go through the numbers!
