Expanded instant asset write-off for businesses (July 2020 Client Alert)

| Accounting, Business

If you’ve purchased assets for your business, remember that you may be eligible to claim an immediate deduction under the instant asset write-off, which was recently expanded.

From 12 March to 31 December 2020 inclusive, the instant asset write-off threshold for each asset increased to $150,000 (up from $30,000) for business entities with aggregated annual turnover of less than $500 million (up from $50 million).

To get it right, remember:

  • check if your business is eligible;
  • both new and secondhand assets can be claimed, as long as each asset costs less than $150,000;
  • assets must be first used or installed ready for use between 12 March and 31 December 2020;
  • a car limit applies for passenger vehicles;
  • if the asset is for business and private use, only the business portion can be claimed;
  • you can claim a deduction for the balance of a small business pool if its value is less than $150,000 at 30 June 2020 (before applying depreciation deductions); and
  • different eligibility criteria and thresholds apply to assets first used or installed ready for use before 12 March 2020.

Give us a call if you’d like to run through your acquisition and/or purchase plans.

To read other July 2020 Client Alerts, click here.

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